Analyst Says XRP Bulls Have Stepped in as Recent 18% Drop Leads to Double Bottom

XRP eyes a potential double-bottom structure amid the recent crypto market downturn that triggered a 9% drop in its price.

The cryptocurrency market faced a bearish turn following the Federal Reserve’s decision to cut interest rates by 0.25%. XRP experienced a sharp 18% decline from $2.7 to $2.2. 

This drop coincided with Bitcoin’s retreat to $100,000 from the $108,000 top yesterday, triggering sell-offs across altcoins. However, analyst EGRAG believes XRP’s latest price action signals bullish momentum and presents a potential recovery pathway.  

Bulls Step in After Price Drop  

In his latest analysis, EGRAG shared a 1-hour XRP chart that highlights the recent market drop and its aftermath. Notably, the XRP price tumbled to the $2.2 level but rebounded after finding support within the $2.17–$2.27 range, highlighted in blue on the chart. 

Interestingly, EGRAG’s chart shows that XRP remains below the 21-period Exponential Moving Average (EMA), currently at $2.39. This level serves as the most immediate resistance level, with XRP’s position below it suggesting a battle between buyers and sellers.  

EGRAG emphasized that with the latest 18% drop, XRP bulls have stepped in, countering bearish sentiment after the sharp decline. Notably, the 1-hour chart appears to be forming a potential double-bottom structure with the recent crash, a bullish reversal pattern.

For context, the first bottom occurred when XRP dropped to a low of $2.33 on Dec. 16 before recovering to the peak of $2.72 yesterday on the back of the Ripple stablecoin RLUSD launch. The recent slump to $2.17 has confirmed the second bottom. 

If this holds, XRP could consolidate in the highlighted support zone before resuming its uptrend. However, XRP needs to breach the neckline resistance at around $2.7 to validate the structure. The bulls’ involvement might stabilize the price.

XRP Indicators  

For context, the recent disclosure is EGRAG’s latest update on the 1-hour chart analysis. The analyst had earlier advised traders to analyze the ongoing price action in detail. 

#XRP Quick Update 1 Hour Time Frame (UPDATE):

I can show you the road, but I can’t walk it for you. 🛤️ Take the time to compare today’s post with yesterday’s—read, analyze, and understand the difference. If you have any questions, drop them in the comments below so everyone can… https://t.co/8x92Hm4aU2 pic.twitter.com/8awuliZmH2

— EGRAG CRYPTO (@egragcrypto) December 17, 2024

He noted that the Relative Strength Index (RSI) had aligned with price trends. RSI movements pointed to strength as XRP hovered near the 70 mark. A breakout above 70 could set the pathway to 90, indicating a bullish case.  

Also, the Moving Average Convergence Divergence (MACD) further supported this bullish outlook, with its histogram bars flipping bullish. Additionally, the Average Directional Index (ADX) hinted at an improving outlook. 

XRP Price Scenarios  

Meanwhile, six days before the latest price drop, EGRAG predicted two possible scenarios for XRP’s short-term movements. At the time, XRP traded for $2.31. Scenario A pointed to a breakout above $2.5, which would have set the stage for further gains. 

#XRP – Quick Update on the 1-Hour Timeframe!

Here’s the latest breakdown for XRP’s next moves:

🔹 Scenario A:
✅Range: Between $2.27 and $2.50
✅Outcome: A breakout to the upside!

🔹 Scenario B:
✅Dip: Break down to $2.27
✅Range: Consolidate between $2.17 and $2.27… pic.twitter.com/IlC2ECe4L4

— EGRAG CRYPTO (@egragcrypto) December 13, 2024

However, Scenario B projected a dip to $2.27, followed by consolidation in the $2.17–$2.27 range. This range-bound action would allow XRP to form a double-bottom pattern, building a foundation for future bullish momentum.  

With the recent drop, XRP appears to be following Scenario B. The price has retested the $2.2 zone, where it found support, and could now consolidate before attempting a breakout. 

EGRAG believes this phase will allow major moving averages to catch up, creating a healthier structure for sustained growth. If the double-bottom pattern plays out, XRP could see a recovery above the $2.5 level. At press time, XRP trades for $2.35, up 1.89% this morning.