As a seasoned analyst with over seven years of experience in the crypto market, I’ve seen my fair share of ups and downs – and that includes the recent tumultuous few days for XRP. While it’s natural to feel disheartened when we see our investments plummeting, it’s essential to maintain a balanced perspective.

TL:DR;

  • The entire cryptocurrency market went through a massive crash in the past few days, but Ripple’s cross-border token was among the poorest performers.
  • Since then, though, XRP has gained roughly 20%, leading to the question of whether it has found its bottom.

XRP Bounces Off

At the onset of the work week, it was difficult to anticipate the events that would unfold only a few days afterwards. On Monday, Ripple unveiled that its much-awaited stablecoin would be launched on December 17, following approval from the New York Department of Financial Services (NYDFS).

The cost of XRP increased favorably following both the announcement and its release, soaring from approximately $2.35 to more than $2.7 in multiple days by Tuesday. However, after a brief dip to $2.6, things took a turn for the worse on Wednesday, following the most recent US Federal Open Market Committee (FOMC) meeting.

Over a span of 36 hours, XRP, like other market players, fell to around $2.25, representing almost a 20% decrease in value. This downward trend was further aggravated on Thursday and Friday, as the asset dropped below the $2 mark for just the third occasion since December, causing additional distress.

Consequently, Ripple’s token experienced a drop of 28% from Tuesday to Friday, going down from $2.72 to $1.96. However, the bulls intervened at this stage and prevented any additional drops. Instead, XRP rebounded and has since increased by approximately 20%, currently trading at $2.35.

Based on the analysis of well-known expert Dark Defender, XRP has exhibited a “double tap” on 4-hour charts in both RSI (Relative Strength Index) and price, along with a “strong bullish pin” on the daily chart. This pattern indicates that the asset may have already hit its lowest point and is poised for further increases.

XRP double tap on 4-hour charts for both on RSI and Price.

Additionally daily frame has a tremendous bullish pin bar.

These are initial signals for momentum to continue.

Time will tell

— Dark Defender (@DefendDark) December 20, 2024

It’s About Perspective

In the midst of a downturn, I found myself pondering alongside other crypto analysts if the broader bullish trend might have run its course. After all, it was alarming to see that the total value of the crypto market plummeted by an astounding $500 billion within mere days at one point.

Moon Lambo presented an alternative perspective regarding the recent retracements, including XRP’s drop. He emphasized that considering XRP, for example, was valued under $0.5 only two months prior, moving from over $2.7 to under $2 may seem disappointing. However, when viewed in a broader context, it demonstrates that the asset is significantly higher than its recent past value just a few weeks ago.

Speaking as an individual who’s owned XRP for more than seven years, during which it rarely exceeded the $1 mark, constituting nearly all of its existence, and not having sold a single XRP throughout, let me express…

I find it amusing that people are freaking out that $XRP *dropped* to $2.15.

Bitch it was 49…

— Moon Lambo (@MoonLamboio) December 20, 2024

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2024-12-21 10:23