XRP, the fourth-largest cryptocurrency by market capitalization, experienced a sharp 5.18% drop on December 30, 2024, within just a few hours. Despite the sudden selloff, opportunistic investors seized the opportunity to “buy the dip,” helping the token regain stability.
XRP Price regains stability
As the year-end approached, profit-taking by investors likely contributed to the increased selling pressure. This selloff cascaded into approximately $7 million in liquidations of XRP long positions out of a total of $173 million in leveraged positions across the market.
The selloff drove XRP perilously close to the $2.00 threshold—a significant psychological and technical support level. However, buyers quickly stepped in, preventing the token from breaching this critical floor of $2. The influx of buy orders stabilized XRP’s price, signaling renewed investor confidence.
The resilience shown in the quick rebound highlights the cryptocurrency market’s ability to absorb sudden shocks and recover rapidly, underscoring sustained interest in XRP from both retail and institutional investors.
Read more: In this guide we explain how to buy and sell XRP
Technical analysis and price action
Despite the recent dip, analysts maintain an optimistic outlook for XRP, with some forecasting a price target as high as $11 by 2025.
Currently trading at $2.05 with a market capitalization of $116.40 billion, XRP shows bullish signs. The Relative Strength Index (RSI) stands at 57.85, reflecting positive sentiment and potential for upward movement. If the Moving Average Convergence Divergence (MACD) line crosses above the signal line, traders should watch for potential buy signals.
The quick recovery of XRP reveals the ongoing investor interest in the token. However, the cryptocurrency market is known for its unpredictability, which means the bullish sentiment should be considered alongside other influential external factors like regulatory developments, institutional adoption, and overall market trends.
Read more: Ripple News: Here’s Why XRP Price Could Go Parabolic Soon
