From December 16 to December 18, Ripple‘s XRP experienced a 17% decline in price, falling to a support level of $0.57 before making a slight recovery. Despite this dip, technical analysis indicators suggest that long-term investors should not panic, as the overall signs remain positive.
Some investors have seen the recent price pullback as an opportunity to buy. If Bitcoin bulls can successfully defend the $42,000 region and push the price higher, it would likely please XRP investors and the broader market.
An examination of XRP’s daily price chart reveals a support zone between $0.57 and $0.61. This range had previously facilitated the formation of a bullish market structure in mid-November, which led to a rally where XRP reached $0.7 without a subsequent price drop.
Although the price later retreated to around $0.6, the On-Balance Volume (OBV) indicator started to rise, suggesting consistent buying pressure from investors. This could indicate potential for a future price increase. The Relative Strength Index (RSI) at the time of writing showed a downward momentum, standing at 45.
The $0.6 price level could represent a good risk-reward buying opportunity for XRP bulls aiming for $0.7 and above, assuming Bitcoin does not face a major sell-off. Additionally, data from Hyblock’s heatmap shows that the $0.55 to $0.565 range has been a zone of high volume predicted liquidation levels over the past three months, which could be positive for market vitality and liquidity inflow. The $0.63 and $0.68 levels also represent minor but notable liquidity levels, while the $0.686 level has been a consistent resistance since November 11. This could set a new potential price range between $0.58 and $0.68 in the coming weeks.