XRP experienced a breakdown from a prolonged consolidation late Saturday, dropping below the $1.93 support level. Increased trading volume confirmed that sellers were dominant, despite the mixed performance in the broader cryptocurrency market.
Context of the News
- This decline occurs amid a general decrease in risk appetite within the crypto space, with Bitcoin finding it tough to maintain recent gains and major altcoins seeing selective selling pressure rather than widespread capitulation.
- Experts have observed that XRP has been particularly susceptible after falling below the $2.00 mark earlier this month, as multiple rebound attempts failed to garner sustainable interest.
- Data from Glassnode highlights that below $1.77, realized supply diminishes significantly until reaching the $0.80 zone, a price point that previously saw substantial accumulation in earlier cycles.
- While this scenario is more long-term, the loss of intermediate support has heightened the risk for further downside moves.
Technical Overview
- XRP spent most of the trading session fluctuating between $1.90 and $1.95 before sellers enforced a breakdown beneath the lower boundary.
- The $1.93 level, which had provided support during several tests, was breached during U.S. trading hours with volume significantly exceeding recent averages.
- The most impactful movement occurred around 13:00 UTC, as the price dipped to $1.897 on a volume of approximately 93.8 million tokens, about 78% over the 24-hour average.
- This price action transformed the previous support area into resistance, signaling a breakdown of the earlier consolidation pattern.
- A review of the hourly chart shows XRP trading below its short-term moving averages, with momentum indicators indicating a downturn rather than divergence. The inability to swiftly reclaim $1.93 leans the near-term sentiment towards the bearish side.
Summary of Price Movements
- XRP declined from $1.926 to $1.915 within the 24-hour period ending Dec. 22 at 02:00 UTC
- Price briefly surged to $1.95 earlier in the session before experiencing a sharp reversal
- A late-session downturn allowed XRP to settle at $1.907 during the final hour
- Volume intensified during the breakdown rather than tapering off, indicating active selling rather than a lack of liquidity
Despite some buying interest near $1.90, upward movements lacked vigor, preventing the price from re-entering the prior range.
Key Points for Traders
- $1.93–$1.95 now represents a resistance band following the breakdown
- $1.90 is a critical level that bulls must defend to avert further selling
- A definitive drop below $1.77 could expose a much thinner demand area until approximately $0.80, based on on-chain cost basis analysis
- Any recovery effort will require a swift reclaim of $1.93 with increasing volume to counteract the current setup
Currently, XRP finds itself in a tenuous technical position, with sellers dominating rallies and buyers showing limited enthusiasm at elevated price levels.
