XRP Defies Hourly Death Cross With 5% Price Jump

by

As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I’ve seen more than my fair share of market surprises. The recent 5% price surge of XRP, despite the ominous “death cross” on its hourly charts, is one such instance that has caught my attention.

Regardless of the bearish indication indicated by a “death cross” in XRP’s hourly charts, the digital currency has still experienced a 5% increase in value, making it the fourth largest cryptocurrency by market capitalization. The “death cross,” which happens when a short-term average moves below a long-term average, is usually interpreted as a negative sign, indicating potential future decreases. However, the recent price surge suggests otherwise for XRP.

As a researcher observing the cryptocurrency market, I noticed an unexpected resurgence in XRP, despite the ominous “death cross” signal it had earlier this week. In fact, XRP has experienced a 5% growth within the past 24 hours. Interestingly, the broader crypto market underwent a substantial sell-off earlier this week, leading to liquidations amounting to over $1.4 billion in Friday’s trading session. However, it appears that the market is bouncing back, as several cryptocurrencies are displaying signs of recovery over the weekend.

As an analyst, I observed a noteworthy development last week: The Federal Reserve’s preferred inflation measure showed a lower-than-anticipated figure on Friday. This unexpected dip seemed to alleviate some of the market’s discontent following the Fed’s interest rate decision announcement on Wednesday. Consequently, this unexpected relief appears to have contributed to the subsequent market rebound.

It appears that data from the blockchain indicates a buying trend by large investors or “whales,” as they have been purchasing XRP during market downturns. In fact, within the past day, Whale Alert, a blockchain data tracker, noted a transfer of approximately 99.9 million XRP valued at around $222 million between unidentified wallets. As per crypto analyst Ali Martinez, these whales have been acquiring about 80 million XRP since the price correction started on December 17.

XRP price action

Following two consecutive days of drops, XRP hit a low of $1.95 during Friday’s trading, but then quickly bounced back. Earlier on December 17th, XRP had faced resistance at the level of $2.72.

On the negative side, a fall below $1.90 is a crucial point for buyers to hold as any dip beneath it could potentially push XRP towards its 50-day Moving Average at $1.59. At this moment, XRP has increased by 5.03% over the last day, reaching an intraday high of $2.38.

At the moment, the daily Relative Strength Index (RSI) is slightly above its midpoint, indicating potential for sideways trading over the short term. XRP could fluctuate between roughly $1.90 and $2.72 for a while longer before making its next significant move. If it manages to break past $2.73, it could initiate a new upward trend aiming for $3 or higher.

Positive updates about the XRP Ledger: The Multi-Purpose Token (MPT) was thoroughly checked by Softstack GmbH, revealing no major issues. This is an essential milestone for maintaining strong security. The MPT token standard in the XRPL allows for efficient tokenization and supports a wide range of digital assets on a secure blockchain infrastructure.

Read More

2024-12-21 17:28