XRP price has recently experienced a significant downturn, dropping more than 8% over the past seven days after reaching its highest levels in six years on December 17. This decline has brought XRP closer to a critical support level at $2.17, indicating a pivotal moment that could determine its short-term trajectory. Despite this pullback, momentum indicators such as RSI and CMF are showing mixed signals, with some signs of recovery but not enough to confirm a strong bullish trend. Traders are closely monitoring XRP’s ability to hold its support or reclaim its December uptrend to shape its next moves.
The Relative Strength Index (RSI) for XRP has surged to 43.12, indicating a strong shift in momentum from below 20 just three days ago. This increase suggests a recovery in buying interest, with traders possibly viewing lower prices as an opportunity. RSI is a momentum oscillator used to assess recent price changes, with readings below 30 indicating an oversold condition and above 70 suggesting an overbought condition. XRP’s RSI of 43.12 currently places it within a neutral range, neither overbought nor oversold.
The Chaikin Money Flow (CMF) for XRP is currently at 0.04, reflecting a moderate level of buying pressure after a recent recovery from negative values. While the positive CMF suggests ongoing interest from buyers, the decrease from its high of 0.11 indicates a weakening of bullish momentum. This could lead to sideways price movement or the need for stronger volume to sustain any upward trajectory. CMF ranges between -1 and +1, with positive values indicating net buying pressure and negative values reflecting net selling pressure.
XRP’s current price stability relies heavily on the critical support level at $2.17. If this level fails to hold, a significant downside move could be triggered, with the next strong support at $1.89. On the other hand, regaining the uptrend experienced at the beginning of December could lead to a more optimistic outlook for XRP. A recovery of bullish momentum could see XRP testing resistance levels at $2.33, $2.53, and $2.66. Support levels like $2.17 often act as psychological and technical barriers that buyers defend to prevent deeper declines.
It is important to note that this price analysis article is for informational purposes only and should not be considered financial or investment advice. Market conditions are subject to change without notice, so conducting your own research and consulting with a professional before making any financial decisions is crucial. BeInCrypto is committed to accurate, unbiased reporting, and readers are advised to review the updated Terms and Conditions, Privacy Policy, and Disclaimers. As XRP continues to navigate through its current price levels, monitoring key support and resistance levels along with momentum indicators will be crucial for traders and investors in assessing potential price movements.
