XRP Price Slumps 5% as Analyst Predicts a Rally to $4

Highlights:

• XRP Price has slumped 5% to $2.38 at press time, as its daily trading volume soars, suggesting increased market activity. 
• Crypto analysts predict a rally to $4.40 in the XRP price.
• The token has entered a consolidation phase, which may act as an accumulation period before a substantial rally. 

The XRP price has plummeted 5% to trade at $2.38 at press time. However, its daily trading volume has risen 8% to $13.31 billion, suggesting heightened market activity. XRP is now up almost 1% in a week, 342% in a month, and 251% in a year. 

Meanwhile, a well-known analyst, @Ali charts, says that the XRP price could rally to $4.40. He has noted via the X platform that with three consecutive bull pennants, We should all be praying for a retest of $2.25 to buy the dip and target $4.40.’’

$XRP: 3 consecutive bull pennants! We should all be praying for a retest of $2.25 to buy the dip and target $4.40! pic.twitter.com/KgXnM929yk

— Ali (@ali_charts) December 9, 2024

XRP Statistical Data

Based on CoinmarketCap data:

• XRP price now – $2.38
• Trading volume (24h) – $13.31 billion
• Market cap – $138.58 billion
• Total supply – 99.98 billion
• Circulating supply – 57.11 billion
• XRP ranking – #4

XRP Price Aims for a Breakout to $3

Ripple’s token has faced a pullback from its impressive rally following the broad market downturn. Currently, XRP is trading at $2.38, with a decline of 5.45% on the four-hour chart. This has forced the XRP price into a consolidation phase, with the token oscillating between $2.21 and $2.76. 

The XRP price has breached the 50-day SMA at the $2.44 support level, showing some bearish prospects. However, the $1.42, support level coinciding with the 200-day SMA holds intact, giving the bulls the upper hand. Although not currently overbought according to the position of the Relative Strength Index (RSI), XRP may need a catalyst to keep the uptrend intact. Holding the $1.42 support intact might encourage investors not to sell for short-term profiteering but to focus on the potential gains targeting $3 and $5, respectively.

The Relative Strength Index (RSI) has plunged below the 50-mean level, currently at 45.05, suggesting dwindling buyer momentum in the market. Traders interested in holding long positions in XRP and possibly desire to seek more exposure to the token may do so assured that the four-hour golden cross pattern is a bullish gesture. A golden cross occurs when a short-term moving average (50-day SMA) crosses above a long-term moving average (200-day SMA).

The MACD indicator notably suggests some bearish prospects in the XRP market. This is evident as the blue MACD line has flipped below the orange signal line, indicating intense selling pressure. This signals that traders are inclined to sell unless the MACD changes.

XRP Price Outlook

The XRP price in the four-hour chart outlook above shows that the token has entered the consolidation phase. However, the bears are gaining momentum, which might see the XRP price plunge further. Based on the technical outlook, the bears have already breached the support level, coinciding with the 50-day MA at $2.44.

If the bears capitalize on the falling RSI and the sell signal from the MACD, the XRP price may fall further. In such a case, they might chase the $1.86 support level. However, if the $1.42 support level, which coincides with the 200-day SMA, holds, the XRP price could rally. This is because the consolidation phase may act as an accumulation period which could see XRP price hit $3 to $5 in the near term.