XRP May Reach New Highs By Year-End After Recent Fall

XRP could be gearing up to reach new highs in the imminent market-wide resurgence by the end of the year following a depressing 6.5% intraday collapse yesterday.

Bitcoin (BTC) and the rest of the crypto market have faced an aggressive roadblock to the recent market-wide upsurge. This roadblock has triggered a correction across the board, with BTC dropping 5.75% yesterday and Ethereum (ETH) collapsing 5.41% within the same timeframe. 

A Market-Wide Correction

Amid the collapse, the crypto market witnessed up to $320 million in long liquidations within 12 hours yesterday, as most traders continued to bet on a sustained uptrend. The Crypto Basic confirmed that most of these liquidations involved BTC and ETH positions.

XRP did not escape the onslaught, as it recorded a more substantial 6.5% loss yesterday. This drop represented XRP’s largest intraday decline for nearly four months. The last time the digital asset observed a bigger 24-hour collapse was on Aug. 17, when it plummeted 14.01%.

The recent decline brought XRP back to the lows of Dec. 5 at the $0.60 price zone. The bears aimed to drop it further to $0.58 but the asset mounted a firm defense at the $0.60 support, hedging against any declines below this level. XRP is currently trading for $0.6208, with a 6.70% drop over the past 30 days.

XRP Throttling Toward Oversold Regions

However, market participants have a reason to hold onto optimism, as analysts have projected that the recent correction was an expected part of the market movement. Market veteran Will Clemente pointed out that BTC had doubled in value within two months without observing a retracement.

According to him, the recent correction is natural and is necessary to relieve the market of weak hands. This move would give room for more a more firm foundation. A LMAX Group Market Analyst Joel Kruger also said the retracement is healthy for the market, as it helps assets drop from overbought territories.

This is especially true for XRP, whose Relative Strength Index (RSI) has dropped to 48.25 from 67.50 on Dec. 8. This position suggests that the upward momentum has weakened, and XRP is no longer on the verge of becoming overbought. The digital asset now treads in neutral territories.

In addition, XRP’s Commodity Channel Index (CCI) has dropped below 0, currently at -18.28. This trend, coupled with the RSI movements, indicates that XRP is now moving toward oversold positions. This could help the cryptocurrency rebuild its momentum and leverage the $0.60 to $0.62 territory as a launchpad to new highs.

Nonetheless, analysts warn that the correction might not be completely over. Should further drops materialize, XRP could fully dive into oversold conditions, marking an imminent price resurgence. Should this resurgence occur, XRP would meet its first resistance at the $0.6844 price.

Conquering this zone would bring $0.7328 into play, with the next resistance at $0.7812. XRP’s journey to hit new yearly highs would also face another roadblock at the Fib. 0.786 level, currently at $0.8501. The last resistance before a new yearly peak stands at $0.9378.