Date: Wed, Jan 01, 2024, 04:43 AM GMT
The cryptocurrency market has kicked off the new year with signs of recovery after a notable correction throughout December. Bitcoin (BTC), which recently reached an all-time high of $108,000, has now retraced to levels above $93,000.
This bearish sentiment has impacted top altcoins, including XRP, which saw a pullback after an impressive rally in November. The rally was primarily driven by Donald Trump's election victory and the resignation announcement of SEC Chair Gary Gensler.
However, amid the recent correction, XRP's monthly gains have shrunk to 13%.Meanwhile today, $XRP appears to be regaining strength, making notable gains of over 4%. The current price action indicates the potential for a rebound.
Source: Coinmarketcap
XRP Price Action: Holding Key Support
XRP’s recent decline was triggered by a rejection at the $2.90 resistance level, the upper boundary of a symmetrical triangle pattern (as shown in the chart). This rejection led to a pullback, testing the triangle's lower support level multiple times. Historically, XRP has demonstrated resilience at these levels, and the recent bounce off the $2.00 support zone is no exception.
XRP 4H Chart/ Coinsprobe
Currently, XRP is trading at $2.10, just above this crucial support level. The symmetrical triangle pattern remains intact, providing a clear framework for potential price movements.
The MACD (Moving Average Convergence Divergence) is nearing its bottom, indicating diminishing bearish momentum. The RSI (Relative Strength Index) is also approaching oversold levels, signaling that the selling pressure might be easing.
What’s Next for XRP?
As the $2.00 support holds, XRP has the potential to stage a recovery and retest the upper resistance of the triangle around $2.46. A breakout above this level could pave the way for further bullish momentum, with the $2.90 resistance zone coming back into focus.
Conclusion
XRP’s ability to hold its key support level and the bullish signals from MACD and RSI suggest that a recovery could be on the horizon. However, a failure to maintain the $2.00 level might lead to further downside. Traders should keep an eye on the symmetrical triangle pattern for clues about XRP's next move.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
