XRP gives up a major short-term support level but is still on track to witness its second-highest monthly close in three years.

XRP, like most cryptocurrencies, had an impressive showing over the past month but is now stuck in a Federal Reserve-led market rout, with at least one indicator hinting at more downside in the short term.

XRP Loses 200 MA on 4-Hour Chart

XRP’s recent rout may still have room to the downside after falling 24% from highs near the $2.6 price point to lows below $2 over the past week, at least judging by one key indicator.

As highlighted by crypto analyst “BLOCK BULL” on Thursday, December 26, XRP has fallen below the 200-period moving average on the four-hour chart, hinting at a continued sell-off in the short term as the previous price support now appears to be turning resistance.

The 200 MA measures the average closing price of an asset over the past 200 hours and serves as a trend indicator. An asset is considered to be in an uptrend when it trades above the MA and in a downtrend when it trades below it. 

While analysts mostly leverage the indicator on the daily candle chart to confirm long-term trends, it can also help identify short-term market swings on lower time frames, as with XRP in this instance.

Still, the target for XRP’s potential price drop and whether the drop will actually occur remains to be seen.

Meanwhile, as further highlighted by BLOCK BULL, XRP is still likely to end December on a significantly positive note, regardless of what happens.

Record Monthly Close

In a separate post, BLOCK BULL noted that XRP remains on track for a record monthly candle close in December 2024.

The analyst stressed that XRP could have its second-highest monthly close in the past three years as long as it closed above the 82 cents price point. To be sure, XRP is currently trading at $2.18 and is unlikely to have a major price crash to below the $1 mark in the next few days unless driven by a significant external catalyst.

In further positives, XRP remains far above its 50-day and 200-day moving averages on the daily candle chart, suggesting its long-term uptrend could still be intact.

A market analyst believes investors who failed to purchase XRP under a three-digit price level will regret their decision.

Coach JV, a market commentator and CEO of 3T Warrior Academy, revealed this amid the turbulence that has ravaged the crypto market. XRP has not escaped the bloodbath, dropping 1.24% on Christmas Day and by a more substantial 6.06% on Boxing Day.

“Investors Will Regret Not Buying XRP Below $100”

However, the altcoin appears to have begun recouping these losses, but this rebound has not been sufficient to put it back above the $2.2 level. Despite the gloomy condition, Coach JV believes XRP’s long-term fundamentals are looking good.

He expressed this confidence in a recent disclosure, as some investors sit on the sidelines amid XRP’s price performance. Interestingly, his commentary suggests he expects XRP to finally overcome the $2 territory and push toward new highs at $5 and $7. 

According to Coach JV, market participants who fail to procure XRP at $2, $5 or $7 would regret their decision someday. Further, in a more ambitious outlook, the market expert predicts that these individuals would FOMO into XRP when it clinched an audacious $100 target.

The $100 XRP Price Prediction

The $100 price prediction has been a central theme within the XRP community, with one camp vehemently championing it while the other dismisses it as wishful thinking. 

Notably, XRP’s total supply is about 100 billion tokens, translating to a $10 trillion valuation if XRP hits $100 per token. Critics have cited this supply issue as the major factor preventing such a price level, as a $10 trillion market cap represents about 10% of the total global M2 money supply.

Nonetheless, some experts remain optimistic. For instance, market commentator Armando Pantoja argued last month that an XRP rally to the $100 mark is very possible. He dismissed these concerns around market cap constraints. Crypto YouTuber Levi also said he is “100% certain” that XRP can hit $100.

Now, Coach JV, who also champions this price prediction, believes most investors would only start FOMOing into the XRP market after it claims the $100 level. In his recent commentary, the trader warned against a short-term mindset, which pushes investors to anticipate immediate gains. According to him, it destroys portfolios.

XRP in a Strong Position

Meanwhile, amid the ongoing market turbulence, XRP appears to be in a comfortable position. While the token has defended the $2 support, currently changing hands at $2.15, its Commodity Channel Index (CCI) now stands at -112, suggesting an undervalued position. 

This figure indicates that XRP has massive room for growth, which could see it finally breach the $3 level once the market recovers. For context, the last time the CCI traded at the -100 level was in late October when XRP traded for $0.50. It had enough room to rally 480% to $2.9 on Dec. 3 from this level.