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A couple of hourly red candles emerged in the middle of the trading day Monday, and they began to pull Ethereum, Dogecoin, and Avalanche into the red for the weekly period ending Monday.
But no top ten losses were as steep as those for XRP as afternoon turned to evening on the US East Coast Monday. By the time stock markets in New York closed, Ripple tokens were down over 7% for the 7D span on crypto exchanges that run 24 hours a day.
XRP Daily Volume Drops 93% in Dec
One decisive factor in XRP’s declining price Monday was a massive downturn in trading volume on popular cryptocurrency exchanges like Binance, Kraken, and KuCoin.
XRP daily trade volume on these platforms fell to $2.5 billion Sunday evening from $37.5 billion to start off December just less than a month ago. Keep in mind that XRP was the outstanding gainer among its peers in November and December after Donald Trump’s successful reelection to the White House on Nov. 5.
XRP’s price over-indexed so far above its peers during this period that it carried the cross-border settlement tokens for the year. From Jan. 1 to Dec. 25, XRP returned a yearly green candle of 247% to Bitcoin’s 126%, Solana’s 75%, and Ethereum’s 49%.
So, altcoin traders might have expected Ripple’s price and volume to decline based on mean reversion to the average trend for these digital assets. Other crypto assets like Bitcoin and Ethereum fell in trading volume, but not nearly as much as Ripple this month.
Bullish Sign for XRP’s Price Soon?
This is interesting because Ripple’s price notched a 10% gain in December without volume support. That means when volume comes back, it could really launch. Meanwhile, the 7-day price decline creates a window of opportunity for altcoin traders to make an entry at a value over earlier December prices for Ripple.
Crypto X analyst Zach Rector describes XRP as “incredibly undervalued.”
Ripple Incredibly Undervalued! #XRP pic.twitter.com/IncujYdMO4
— Zach Rector (@ZachRector7) December 29, 2024
Fibonacci and Elliot Wave analysis show a bullish reversal in play to start January, with a descending wedge from Dec. 1 if XRP’s price doesn’t dip below key support at $2.
Legendary technical chart analyst Peter Brandt is targeting $2.71 for XRP soon. In addition, popular X crypto analyst MikyBull Crypto expects $4 Ripple in the near future.
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