- XRP consolidates at $2.25 with declining volume and mixed market signals, reflecting cautious trader sentiment.
- Support at $2.16 and resistance at $2.28 suggest consolidation, with technicals pointing to neutral-bearish trends.
- Derivatives show rising open interest despite liquidations, highlighting cautious optimism amid reduced speculative activity.
XRP is trading at $2.25 at press time with a 24-hour trading volume of $4.1 billion, reflecting a 2.20% price decline in the last 24 hours on December 26, 2024. Its market cap stands at $128.8 billion, supported by a circulating supply of over 57.2 billion coins.
Despite its substantial market presence, XRP faces mixed market signals, with a drop in trading activity and increased liquidation of leveraged positions. Technical indicators highlight a consolidation phase, suggesting the market may be entering a period of reduced volatility.
Derivatives Market Signals Contrasting Trends
XRP derivatives reveal a complex picture, with trading volume dropping by 26.84% to $4.55 billion. This decline indicates waning market participation. However, open interest in options has risen by 10.78%, suggesting increased confidence among traders. Binance data highlights a strong long bias, with a long-to-short ratio of 3.1459.
Despite this optimism, $3.36 million worth of leveraged long positions were liquidated in 24 hours, signaling heightened risk. Additionally, options volume plummeted by 72.04%, reflecting diminished speculative interest. Consequently, while sentiment appears cautiously bullish, volatility persists across major platforms like Binance, OKX, and Bybit.
Technical Analysis Highlights Neutral-Bearish Sentiment
Recent price movements exhibit a downward trend, marked by lower highs and lower lows. The RSI stands at 45.42, indicating a ranging market without overbought or oversold conditions. The MACD reveals minimal momentum, with both the MACD line and signal line closely aligned. Moreover, the trading volume of 790,000 remains subdued compared to earlier spikes, further confirming reduced market activity.
XRP’s price hovers between its 50-period SMA ($2.28) and 200-period SMA ($2.16), suggesting a neutral-to-bearish medium-term outlook. The compression of moving averages indicates potential consolidation. Notably, the 200 SMA acts as dynamic support, while the 50 SMA is emerging as a short-term resistance.
Key Levels and Outlook for December 2024
Key resistance levels lie at $2.28 (50 SMA) and $2.33 (100 SMA), while immediate support is around $2.16 (200 SMA). Analysts expect XRP to trade between $2.17 and $2.38 by December 2024. Notably, maintaining the price above the 200 SMA will be crucial to preserving its long-term bullish trend.
While the overall sentiment leans neutral-bearish, the broader uptrend remains intact. However, traders must navigate a volatile environment with declining volume and increased liquidation risks, signaling caution for short-term positions.
Changelly blog analysts predict that XRP’s value could range between $2.17 and $2.38. Moreover, the anticipated average price of XRP is $2.28.
