$BTC has recently fallen to its lowest point since late November, a significant drop from its previous historical high, and people's hopes that cryptocurrencies will rise by the end of the year are becoming increasingly slim.
The altcoin market also suffered misfortune. Ripple's XRP, the fourth largest cryptocurrency by market value, fell nearly 20% from its high of $2.72 on December 17 to $2.20.
Let’s take a look at why $XRP fell today and what the price forecast is for the next two years.
XRP Falls: Market Performance
Bitcoin fell to $92,442 on December 24, down 14.5% from its all-time peak of $108,000 a week ago.
XRP is now trading at $2.23, down nearly 14% in the past seven days, with a 24-hour low of $2.1298.
Although it has been falling, XRP's 24-hour trading volume is still US$11.09 billion, indicating that the market is still quite active.
Other cryptocurrencies also fell sharply:
Bitcoin is trading at $93,834, down 12.6% on a weekly basis
Ethereum fell 15.5% to $3,337
Solana fell 15.9% in a week
The cryptocurrency market usually sees a surge at the end and beginning of each year, called the "Santa Claus Rally", but this tradition seems to have failed this year.
The History and Market Outlook of the Santa Claus Rally
In the past bull markets, the cryptocurrency market performed well during holidays. From 2014 to 2023, it rose 80% of the time, with increases ranging from 0.7% to 11.8%.
But there is a big event on December 27th. $18 billion worth of Bitcoin and Ethereum options contracts are about to expire, and the market may become turbulent again.
Although the market is currently sluggish, sentiment indicators suggest a rebound is possible as Bitcoin's social sentiment fell to its yearly low on December 22.
Why is the price of XRP falling?
The cryptocurrency crash began after the Fed’s meeting on December 18. Although the Fed cut interest rates, Chairman Powell’s comments were too hawkish, which was unexpected by investors. The Fed expects to cut interest rates only twice in 2025, 25 basis points each time, which is less than everyone thought before, and global liquidity has tightened.
The dollar index rose to 108.15, the highest point in several months, and cryptocurrencies became even less valuable. As the dollar strengthened, people did not want to invest in risky assets, and XRP fell accordingly.
XRP Technical Analysis
XRP is now trading below the key support and resistance level at $2.49. In the long run, it is still up, but if the market situation improves, the price may rise.
Looking at the XRP chart, the price is correcting now, with support around $2.20. If it falls further, the next support is $2, $1.89, and then the 50-day moving average of $1.82. If it falls below these, it means that the decline cannot be stopped and the bears may dominate the market.
But above these levels, dips are good opportunities to buy XRP.
Resistance now lies at $2.49, $2.71 (Dec. 17 high), and $2.91 (this year’s high).
XRP Support and Resistance Levels
Support Levels:
$2.20
$2 (psychological price)
$1.89
$1.82 (50 SMA)
Resistance:
$2.49
$2.71 (Dec. 17 high)
$2.91 (2023 High)
XRP Price Prediction
XRP Short-term Outlook (2024)
In December 2024, the lowest price of XRP is expected to be US$1.91, the highest price may be US$2.56, and the average transaction price is expected to be US$2.24.
XRP 2025 Prediction
January 2025: Price range between $1.35 and $2.12
February 2025: Expected to fluctuate between $1.3 and $2.5
Late 2025: If institutions continue to use XRP, the price could rise to $5 or more.
Macroeconomics, market sentiment and technical indicators all affect XRP prices. Although there is great pressure in the short term, there are still opportunities in the long run. Investors must be careful of market volatility and risks.
Some people think XRP is overpriced, but I think it is undervalued now, especially after breaking out of that multi-year symmetrical triangle.
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