Following weeks of widespread growth in the broader cryptocurrency market, a period of consolidation has now taken hold, impacting various digital assets, including XRP (XRP). Amid this uncertainty, investors seek guidance from experts, questioning whether XRP will revisit its previous all-time highs or face another phase of devaluation.
In a recent analysis, the renowned chartist CoinsKid suggested that XRP might be gearing up to "gift its holders an early Christmas present." Notably, the analyst pointed out that sellers have been shorting XRP at a crucial support level, typically acting as a barrier to price declines. Failure to breach this support level could attract buying interest, trigger stop-loss orders, and shift market sentiment, potentially causing losses for short sellers. In such a scenario, XRP might undergo a 'short squeeze,' propelling its price significantly.
However, despite this potential positive development, recent performance indicates some concerns. XRP has been moving within the confines of an ascending parallel channel for the past six months, with recent testing and suppression of upper and middle lines. Following a rejection at the mid-line of the channel, XRP might experience a pullback, retracing towards the lower boundary around $0.55, as outlined by crypto analyst Ali Martinez on December 17. While the initial objective was for XRP to surpass its descending wedge in recent months, the momentum proved to be transient. The current XRP/BTC chart positions XRP beneath the Yellow Triangle as BTC experienced a bullish surge to $44,000.
Despite potential challenges ahead, a meticulous analysis of various charts supports a confident projection of $1.3-$1.5 on the horizon, reinforcing steadfast dollar targets, according to a post by crypto analyst EGRAG CRYPTO on December 18. Whether XRP can replicate past achievements remains uncertain, emphasizing the importance of careful analysis and due diligence for investors considering asset allocation.
