- XRP drops 1.44% to $2.39, but analysts remain optimistic about its long-term growth despite short-term pullback.
- After a 283% surge in 2024, XRP holds its bullish momentum, with no signs of a bear market despite recent corrections.
- A potential 0.25% rate cut by the Fed could fuel XRP’s price rally, as past rate cuts have historically benefitted cryptos.
XRP is in the middle of a short-term correction at the moment and trading at $2.39, a 1.44% reduction in the last day. This comes after the market decreased by 0.30% in the last one week and herein lies the worry among some investors. Despite the current short-term challenges some analysts still remain upbeat on the long-term prospects of XRP. It has been considered as a technical correction after a remarkable improvement during the first half of 2024.
During the year 2024, the price of XRP rose significantly by more than 283% and touched the highest value of $2.90. After this surge, a price drop was expected, but technical analysis indicates that token is not yet in a bear market. The lack of lower lows and lower highs on the chart is an evidence of the continuing medium term bullish trend despite the recent bearish pull back.
Fed’s Impact on XRP Price
Many have focused on the Federal Reserve’s decision later this month as the event that could lead to the next price action for XRP. The market is expecting the Fed to cut rates by 0.25% during its December 17-18 meeting, which will be beginning of the third successive rate cut. Federal Reserve policymakers left the federal funds rate unchanged at 2.0 – 2.25% following the release of inflation data showing the Consumer Price Index (CPI) rose only 0.3% in the prior month, reflecting the Fed’s confidence in its ability to manage inflation and possibly fuel further growth in the economy.
In the past, the Federal Reserve has always cut rates in favor of cryptocurrencies such as XRP. Due to lower interest rates, the U.S. dollar loses its value, and investors have to look for other investments and alternatives like cryptocurrencies, which, in return, push up the price. Ripple token rose by 21% within a few days and if the Fed announces another rate cut, XRP may surge again through key resistance levels.
On the technical chart, Ripple token is in a critical area which can either become support or resistance. The first major support level is the 50-day exponential moving average at $2.36 and will set the short-term trend. If this support is held by token, it could open up more buying pressure close to the higher resistance levels.
XRP Support and Resistance Zones
According to Arslan Ali X’s post, XRP major resistance level is at $2.50, this has been an important level in the recent past. If the token climbs beyond this level it would open up potential for further gains with the next resistance levels at $2.65 and $2.86. A breakthrough of the $2.50 level would likely pave the way for the further ascend of token to the $3.00 level in the coming weeks.
Nonetheless, next downside target for the cryptocurrency could be the $2.36 if the price of coin remains below it. Such a case then puts the next key support levels to watch at $2.22 and $2.04 respectively. A break below the levels could indicate a more severe price trend reversal that could cause problems to XRP bulls.
