Will the price of XRP plummet once more?

Will the price of XRP plummet once more?

Because of bearish technical conditions and indications of expanding whale dispersion, XRP may drop 15–25% in December.
Three weeks after reaching $2.90, its highest level since January 2018, XRP has fallen more than 25%. On December 23, it was trading as low as $2.13.
The main causes of the price drop have been the Federal Reserve's hawkish turn and profit-taking at XRP's overbought levels.

The output is: Let's investigate the possibility that XRP's price will decline much more in the days ahead.

XRP might tumble by 15% to 20% over the holidays.

Since early December, the price of XRP has been consolidating inside a Fibonacci retracement range, with the 1.0 Fib level around $1.98 working as support and the 1.618 Fib level near $3 acting as resistance.

The output is: After failing to break over the $3 resistance as of December 23, XRP has entered a corrective phase and may be looking to drop toward the $1.98 support, which is around 15% below its current price, by the end of December.
The weekly chart relative strength index (RSI) for XRP, which stays above 70, supports the bearish bias by indicating overbought conditions and a potential slowdown or reversal in the recent rally.

Profits are being locked up by XRP whales.

In the meantime, the distribution of XRP's wealthiest addresses is expanding.
It is noteworthy that during the consolidation phase in December, the amount of XRP at addresses with at least a million tokens decreased.

The output is:Reduced XRP holdings by major holders (whales) indicate that important investors are selling or taking profits. This selling raises the market's supply of XRP, which might drive the price lower if there isn't enough demand for it.

Reduced XRP holdings by major holders (whales) indicate that important investors are selling or taking profits. This selling raises the market's supply of XRP, which might drive the price lower if there isn't enough demand for it.
On the daily chart, XRP seems to form a descending triangle formation, indicating a pessimistic outlook for the cryptocurrency and hinting at a 20% loss in the near future. This technical configuration indicates a possible negative reversal when it appears during an uptrend.

The output is: In the case of XRP, the trendline connecting the lower highs stretches downward, and the horizontal support level is close to $2.19. The descending triangle might be confirmed by a clear break below the $2.19 support, which might trigger a further drop in price.
By calculating the triangle's greatest height and deducting it from the breakdown point, the pattern's technical goal suggests a potential decline toward $1.69. The 50-day exponential moving average (50-day EMA; the red wave) is in line with this goal.
On the other hand, XRP might attempt the upper trendline at about $2.50 as the next upside objective if it recovers from the triangle's lower trendline. The bearish reversal setup will probably be invalidated by a clean breakout above the upper trendline, putting XRP on course to retest its annual high at $2.90.

With a 60% breakout, the XRP bull flag might overtake bearish.

Current XRP consolidation may shake out weaker hands and let new buyers enter at lower price levels, potentially leading to a short-term price correction. As several analysts have predicted, this might bring the overall rise back.
For example, analyst Bark predicts that by January 2025, the price of XRP will have surged to $3.50 after stabilizing within a bull flag pattern. That is a roughly 60% increase above the current pricing levels.

The output is: Positive fundamentals, such as the possible resolution of the SEC vs. Ripple case under Donald Trump's presidency and the prospective introduction of spot XRP exchange-traded funds (ETFs), provide additional support for the upward view.
See also: XRP price chart 'bull flag' aims for $15 in spite of consolidation
Rumors that Bitstamp would create a cryptocurrency derivatives exchange on the XRP Ledger, expanding XRP's use case and stimulating more speculation, are also boosting market sentiment.

The output is:In a message on December 21, Bitstamp's official X account stated, "XRP is going to make history next year."

The above content is excerpted from Yashu Gola.

Based on the above content, some key insights can be observed.

XRP, the cryptocurrency associated with Ripple, has recently experienced a significant price correction, declining over 25% from its peak of $2.90 in early December 2024 to approximately $2.13 by December 23.

This downturn is attributed to profit-taking at overbought levels and a hawkish shift by the Federal Reserve.

Technical analysis indicates that XRP is consolidating within a Fibonacci retracement range, with resistance near $3 and support around $1.98.

The formation of a descending triangle pattern on the daily chart suggests a potential bearish reversal, with a decisive break below the $2.19 support possibly leading to a further decline toward $1.69.

Additionally, on-chain data reveals that large XRP holders have been reducing their positions throughout December, signaling profit-taking and increasing market supply, which could exert further downward pressure on the price.

Despite these bearish indicators, some analysts maintain an optimistic outlook, identifying a bull flag pattern that could propel XRP toward $3.50 by January 2025, representing a potential 60% increase from current levels.

This perspective is bolstered by positive fundamentals, including the anticipated resolution of the SEC vs. Ripple lawsuit and the potential launch of spot XRP exchange-traded funds (ETFs).

In conclusion, while XRP faces short-term bearish pressures due to technical patterns and whale distribution, the long-term outlook may be more favorable, contingent upon positive developments in regulatory matters and market adoption.