XRP, one of the biggest cryptocurrencies used by Ripple, tumbled to December lows of $2.04 on Monday, leading cryptocurrency market losses as a strengthening U.S. dollar and year-end profit-taking pressured digital assets.

Let’s examine why XRP is down and what technical analysis suggests about future movements. We’ll also review XRP price predictions from analysts and experts.

XRP Price Is Going Down by 6%

The fourth-largest cryptocurrency by market capitalization has dropped nearly 30% from its December 3 peak of $2.9, with a 6% decline in the past 24 hours alone. The token's trading volume stands at $4.5 billion, indicating significant selling pressure as investors reduce exposure ahead of year-end.

The decline is also causing liquidations in the leveraged market. Over the past 24 hours, these liquidations totaled $173 million, with the majority being long positions. A significant portion of these liquidations, approximately $7 million in long positions, was attributed to XRP.

The cryptocurrency market's traditional year-end rally hopes have faded, with Bitcoin retreating from its recent all-time high of $108,000 to trade around $93,700, marking a 12.6% weekly decline. Other major cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term have followed suit, with Ethereum falling 15.5% to $3,337 and Solana showing a 15.9% weekly slump.

The U.S. Dollar Index's surge to 108.5, its highest level in months, has emerged as a key factor pressuring cryptocurrency valuations. This strengthening dollar has made speculative assets less attractive to investors, particularly affecting dollar-denominated assets like cryptocurrencies.

The USD hasn’t been this strong in over 20 years, which certainly makes it harder for cryptocurrencies denominated in it to sustain growth during an already extended bull run.

XRP Technical Analysis

The current market structure shows XRP trading above key support levels, with immediate resistance at $2.5. Technical analysts have identified $2.0-1.96 as a crucial support level that needs to hold to prevent further decline.

In my view, XRP is still moving within a time-limited pennant chart pattern, with its lower boundary currently aligning with the mentioned psychological support level and December lows. A breakout above this level would not only allow XRP to overcome current resistance dynamically but also provide a chance for a measured upward movement towards the $4 or even $5 level.

This scenario would be invalidated if the price falls below the lower boundary of the pennant and the psychological support at $2. In that case, the bears could regain control, and the chart would return to a downtrend.

XRP price key support and resistance levels

• XRP Price Support Levels:
• $2.0 – Psychological support level
• $1.9 – December 10 lows
• Lower boundary of the pennant chart pattern

XRP Price Resistance Levels:

• $2.3 – Upper boundary of the pennant formation
• $2.4–$2.5 – Local highs from the past two weeks
• $2.73 – December 17 highs
• $2.9 – December 3 highs

XRP Price Predictions: Future Outlook

Despite the current downturn, some analysts maintain a bullish long-term outlook. The January Effect could provide some relief to the market in the coming weeks.

For December 2024, analysts project a minimum price of $1.91 for XRP, with a maximum potential of $2.5. However, the immediate focus remains on defending current support levels to prevent further deterioration in market sentiment.

In January 2025, XRP is projected to trade within a range of $1.35 to $2.12. By February, the price is expected to fluctuate slightly, moving between $1.30 and $2.50. Looking ahead to the end of 2025, if institutional adoption continues to gain momentum, XRP could potentially climb to $5 or higher, reflecting increased market confidence and demand.

For instance, Egrag, a popular analyst with 70,000 followers on X (formerly Twitter), believes that XRP could rise to $50 in 2025.

“The next 10 days are crucial for XRP. From a pure technical analysis perspective (ignoring fundamentals for a moment), this could be the most pivotal price action in XRP’s history,” Egrag commented.