Based on the chart, I will analyze in more detail the XRP/USDT price, current trend, and specific direction for investors:
1. Price Action
4 hour chart:
• Current price: 2.1486 USDT, in a weakening zone after falling from a peak of 2.7281 USDT (December 16).
• Main trends:
• Price is below EMA(7) (short term), EMA(25) (medium term), and EMA(99) (long term), signaling a dominant downtrend.
• Strong downward momentum occurs around the resistance area of 2.48 - 2.73 USDT, with high selling pressure.
Support and resistance:
• Short-term support: 2.00 USDT (important psychological area).
• If the price breaks this area, the next target will be 1.96 USDT (low on December 21).
• Short-term resistance: 2.20 - 2.25 USDT (near EMA(99)).
• This is an important resistance area. If the price does not surpass it, selling pressure will continue to push the price down.
2. Technical indicators
EMA (Exponential Moving Average):
• EMA(7) (2.1652): The price below this line indicates a short-term downtrend.
• EMA(25) (2.0888): The downward crossover of EMA(7) below EMA(25) is a continuation signal for decrease.
• EMA(99) (2.2559): The long-term trend still leans towards a decrease. Only if the price exceeds this area can the trend reverse.
RSI (Relative Strength Index):
• RSI(6): 40.42 (near the neutral area).
• RSI(24): 44.05 (not yet in the oversold area).
• RSI is in the neutral area leaning towards a decrease. If RSI drops below 30, the market will enter the oversold area, which may lead to a short-term recovery.
Trading volume:
• Selling pressure (57.8%) is exceeding buying (42.2%).
• This is a signal indicating that sellers are controlling the market. However, if buying volume increases at the support of 1.96, a short-term bounce may occur.
3. Guidance for investors
Scenario 1: Downtrend continues
• Confirmation: Price breaks the support of 2.00 USDT and RSI falls below 40.
• Target decrease:
• Area 1.96 USDT (strongest support).
• Further: 1.90 USDT if the overall market continues to weaken.
Scenario 2: Recovery from the support area
• Confirmation: Price holds above 2.00 USDT and RSI rises back to the 50+ area.
• Target increase:
• Nearest resistance: 2.20 USDT (EMA(7) and EMA(25)).
• Important area: 2.25 - 2.30 USDT (EMA(99)).
Trading strategy:
Short term:
• Investors wanting to buy:
• Wait for the price to test the support area of 2.00 - 1.96 USDT. If a reversal signal appears, such as a strong bullish green candle or RSI surpassing 50, consider opening a short-term buy position.
• Set a stop-loss below 1.95 USDT to limit risk.
• Investors wanting to sell (short):
• Sell in the resistance area of 2.20 - 2.25 USDT.
• Set a stop-loss above 2.30 USDT if the price suddenly breaks out.
Long term:
• If you are investing long-term, monitor the support at 1.96 USDT. If the price holds this area and the cryptocurrency market trend is more positive, XRP could recover to 2.50 - 2.75 USDT in the coming weeks.
4. Risks to note
• The market is highly volatile: XRP is often sensitive to news related to legal cases and the overall cryptocurrency market situation.
• Caution with the breakout area: If the price breaks the support at 2.00 USDT, the risk of a deep drop is very high.
