The XRP price has crashed by 25% from the year-to-date high, ending a strong rally that pushed it to its highest level since 2018. This retreat happened even as Bitcoin price crossed the key level at $100k. This drop has left investors wondering if the Ripple (XRP) bull run is over.
XRP Price: Technicals Hint Bull Run Has More Room
XRP price has been in the spotlight after rising by almost 500% between November 1 and December 3. While this rally has taken a breather, there are rising odds that the coin has more upside as the crypto bull run continues.
In the short term, Ripple’s rebound could depend on where it ends the day at. On the daily chart, the coin seems to be forming either a hammer or a doji candlestick pattern.
A hammer is made up of a small body and a long lower shadow and often has no upper one. A doji, on the other hand, is made up of a lower and upper shadow and a tiny body. These two patterns often lead to a bullish reversal in the near term.
Therefore, if the price of XRP ends the day above $2.1793, it will likely lead to a rebound, potentially to the year-to-date high of $2.90. A break above that level will point to more upside, as some analysts expect.
In an X post, Crypto Michael, who has accurately predicted Ripple’s price in the past, believes that the coin could rise to its all-time high of $3.37 in the near term. Other analysts predict that Ripple could be between $3 and $5.
Conversely, a drop below the crucial support level at $2.17 will invalidate the bullish view for now, and point to more downside. If this happens, it could drop to the 50% Fibonacci Retracement level at $1.6475.
What Next For Ripple XRP?
To conclude, is the Ripple bull run done? The answer is simple, the December 5 daily candlesitck close will determine if XRP price has steam to push higher or if it needs to retrace and catch its breath. To be precise, a daily candlestick close below $2.1793 would trigger a correction. In that case, Ripple investors need to kiss the bull run good bye, at least in the short-term. Conversly, a daily candlestick close above the aforementioned level will show no weakness from a technical perspective and would hint that a consolidation or a continuation of the rally could ensue next.
Regardless of the technicals, the fundamental outlook for Ripple & XRP seems to be improving with the announcement of the new SEC chair, Paul Atkins. Let’s see what Ripple CEO has to say about this regulatory development that has the ability to impact the nearly $4 billion crypto market.
Ripple’s Brad Garlinghouse Hails Atkins As An Outstanding Choice
The XRP price faces numerous tailwinds ahead. The most notable one is that Donald Trump has picked Paul Atkins to be the next Securities and Exchange Commission. In a statement, Brand Garlinghouse, Ripple’s CEP, noted that Atkins will be an outstanding choice who will bring common sense to the agency.
Ripple is also preparing to launch the RLUSD stablecoin, which will be tailored towards institutions. Ripple has noted that it was working with the New York Department of Finance to seek final approval. The developers hope that RLUSD will work alongside XRP to boost crossborder payments.
Most importantly, XRP price could benefit from the ongoing tailwinds in the crypto industry. Bitcoin has soared above $100,000 and the altcoin season index has risen. Also, the crypto fear and greed index remains above 80. All these factors mean that Ripple could blast higher soon.
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