Today's price increase of XRP may be temporary, as signals from the bearish reversal pattern suggest the possibility of a correction, with further increases of up to 20% in the future.
$XRP price increase today, with the rise coinciding with Ripple's donation to the inauguration committee of U.S. President-elect Donald Trump and among other events.
Ripple donates $5 million in XRP for Trump's inauguration ceremony.
The price of XRP has increased by more than 20% in the past 24 hours, reaching $2.36 on December 21. The price surge occurred after cryptocurrency exchanges Coinbase and Kraken reportedly donated $1 million to Trump's inauguration committee.
Fox Business has led the reporting, revealing that Ripple is expected to donate $5 million in XRP for this event. Last week, the New York Times also quoted Ripple CEO Brad Garlinghouse, confirming similar information.
Meanwhile, Coinbase, Kraken, and Ripple continue to face separate lawsuits from the U.S. Securities and Exchange Commission (SEC). However, Trump's victory in the election has raised hopes for a more friendly SEC, especially if Paul Atkins, known for his pro-cryptocurrency stance, is appointed as the leader.
For XRP holders, this could be seen as a positive signal in the legal battle between Ripple and the SEC, contributing to the growth of XRP's price today.
Technical analyses also reinforce expectations for further upward momentum. Notably, the relative strength index (RSI) on XRP's 4-hour chart has dropped to an oversold level below 30, a signal often indicating a potential reversal. This has encouraged inflows from buyers, pushing XRP's price higher.
On Monday, XRP found support near the 200-4H exponential moving average (EMA 200-4H; green wave) around the $2.00 level. This support continues to align with the horizontal support area (marked in red), a region that has historically acted as a strong accumulation zone.
However, looking at the daily chart, the price of XRP appears to have formed a descending triangle pattern, confirmed by the descending resistance trendline and the horizontal support trendline.
Descending triangles appearing in an uptrend are considered bearish reversal patterns. According to technical analysis rules, they are resolved when the price breaks below the horizontal support trendline and declines by the maximum height of the triangle.
Applying the same principle to the XRP/USD chart would set its December bearish target at around $1.77, a decrease of 22.50% from the current price. This price target aligns with the 50-day EMA (red wave).
Conversely, a breakout above the upper trendline of the triangle could invalidate the bearish setup, putting XRP's price on a path toward $2.90, its December high.
