XRP price trades sideways as RSI signals potential downside risk
XRP price dynamics
Ripple (XRP) is currently trading at $2.18, moving within an approximate horizontal trend channel in the medium to long term.
This pattern reflects investor uncertainty as the market awaits a clear breakout signal. A break above the channel would confirm a bullish continuation, while a breakdown could trigger further bearish momentum.
Key support for XRP is identified at $2.05, which aligns with a critical Fibonacci retracement level. This support is expected to act as a defensive zone in the event of increased selling pressure.
On the upside, resistance is noted at $2.56, a level that XRP must breach to regain strong bullish momentum. A decisive move above this resistance could open the door for further gains, potentially pushing XRP toward the next resistance levels around $2.62.
XRP price dynamics (December 2023-December 2024). Source: TradingView.
The Relative Strength Index (RSI) shows negative divergence against the price, indicating a weakening momentum. This divergence is often a precursor to price corrections, suggesting that XRP could face downward pressure in the short term. Traders should closely monitor the RSI and price movements around the key support and resistance levels.
On November 29, blockchain tracker Whale Alert flagged two major XRP whale transactions totaling 139.39 million tokens. One of these transactions involved 104.39 million XRP, worth $167 million, being transferred to an unknown wallet.
