XRP price is currently the fourth largest cryptocurrency by market cap, with a valuation of $130 billion. Despite its strong position, XRP has faced a 10.4% drop over the past seven days, reflecting a period of consolidation following its historic rally in November and December.
Key technical indicators, including a neutral RSI and tightly clustered EMA lines, suggest a lack of clear momentum, pointing to a market awaiting decisive action.
XRP RSI has been neutral for 3 days
XRP’s Relative Strength Index (RSI) is currently at 50.88, reflecting a neutral position since December 20. This level indicates that the market is balanced, with neither buyers nor sellers showing a decisive advantage.
After a historic rally during November and December, the price of XRP entered a consolidation phase. Its RSI has been fluctuating between 40 and 55 for the last three days. This tight range suggests that the coin is experiencing a period of reduced volatility, and traders are hoping for a clearer directional signal.
XRPRSI. Source: TradingView
The RSI is a momentum oscillator that measures the speed and magnitude of price movements on a scale of 0 to 100. Values above 70 typically indicate overbought conditions that could lead to a correction, while values below 30 suggest an oversold state, which often precedes a bounce.
With XRP’s RSI at 50.88, the coin is firmly in the neutral zone, indicating neither excessive buying nor selling pressure. In the short term, this range-bound RSI behavior suggests that XRP price may continue to consolidate unless a strong catalyst emerges to break the current equilibrium.
XRP Whales Stopped Accumulation
On November 24, XRP whale addresses holding between 10 and 100 million XRP reached a monthly high of 310, indicating significant accumulation among large holders. Since then, the number of whale addresses has gradually decreased, reflecting a possible reduction in interest or large-scale distribution activity.
Notably, between December 18 and 21, the whale count increased from 292 to 299, suggesting renewed interest during that period. However, the count has since decreased slightly and now stands at 296, indicating possible hesitancy or profit-taking among major holders.
Addresses containing between 10 million and 100 million XRP. Source: Sentiment
Monitoring whale activity is crucial because these large addresses can significantly influence market trends due to the size of their holdings and potential trading activity.
The recent drop in whale addresses, after a brief rise, suggests mixed sentiment among major holders. In the short term, this could indicate that while some whales are still investing, others may be reducing their positions, which could lead to XRP price consolidation or mild bearish pressure.
XRP Price Prediction: Can XRP Fall Below $2 in December?
XRP price is currently trading within a tight range, with resistance at $2.33 and support at $2.17 defining its immediate limits.
If the $2.17 support fails, XRP price could face a more substantial pullback, potentially falling to $1.89.
XRP price analysis. Source: TradingView
Conversely, if XRP can overcome the $2.33 resistance, it could pave the way for further gains, with potential targets at $2.53 and $2.64.
However, the EMA lines are currently not showing a definitive trend as they are highly clustered, indicating a period of consolidation. This lack of clear directional momentum suggests that XRP’s price movement will largely depend on whether it breaks out of this range, making it crucial to watch these levels in the near term.
