XRP Price Retreats Below $2.58 – On-Chain Data Suggests a Path Toward a New All-Time High

bull market Price Prediction XRP

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Harvey Hunter

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Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.

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Last updated: 

December 5, 2024

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Today’s 6.71% XRP price lapse comes after Ripple Labs dismissed rumors that their upcoming RLUSD stablecoin would launch on exchanges, somewhat stifling end-of-year projections for XRP.

With this dented sentiment, the most anticipated altcoin running into December appears to have taken a back seat, as the past week’s gains fall to 60%.

Coupled with a trading volume surge of 30%, reaching $28 billion, it seems that the downtrend is backed by significant momentum.

On-Chain Metrics Ring Bullish

While the recent decline in XRP’s price is concerning, optimism remains among analysts as on-chain metrics suggest the drop may be a healthy correction rather than a complete reversal.

According to Coinalyze data, XRP’s funding rate has remained relatively stable compared to levels seen during its rally in February 2024 and the March 2021 bull market.

A stable funding rate indicates that the market isn’t overly bullish, even after the 400% XRP price gain over the past month. This stability provides strong grounds for further appreciation with a lower risk of the asset overheating.

Similarly, XRP’s weighted sentiment remains low compared to previous rallies, suggesting that retail traders may not be the primary drivers behind the recent surge.

This implies that current holders likely have more conviction, making FUD less likely to trigger a significant sell-off during market downturns.

XRP Price Analysis: Is a New All-Time High Still in Play?

These claims seem to have validity as technical indicators read much the same, with the formation of an ascending broadening wedge on the 4-hour chart suggesting a potential end to the decline.

The lower support trendline of the pattern appears to be a credible local bottom for a correction, aligning with the support zone between $1.9620 and $1.85.

However, earlier support at $2.0748 presents a potential early bailout, converging with the 50SMA, which has provided strong support throughout the rally so far.

Looking wider, the daily chart makes the former seem more likely, given that the daily Relative Strength Index (RSI) remains lodged in overbought territory at 76. A reading closer to 50, more neutral territory, will be important for a more sustained uptrend.

Given that the lower support of the pattern is maintained, the XRP price can reaffirm its path toward a retest of the pattern’s upper boundary, approaching its past $3.85 all-time high—representing a 60% increase from current prices.

This Fleeting Opportunity Could Be the Better Play

While XRP investors could benefit from holding until it’s next all-time high, fortune favors the bold – emerging opportunities that hold the potential for truly substantial gains.

Among them, Catslap ($SLAP) stands out as a credible contender to the likes of Popcat, Mogcat, and Mew.

It’s far beyond a mere meme coin; it’s an addictive gamified experience that calls its holders into competition, clicking to increase their country’s score and move up the Slapometer.

This feeds heavily into what analyst Murad Mahmudov notes as a paradigm shift towards “movement coins,” something which appears to be playing out with the sudden rise of coins like $ACT, $GOAT and $PNUT.

This feeds heavily into what analyst Murad Mahmudov notes as a paradigm shift towards “movement coins,” something that appears to be playing out with the sudden rise of coins like $ACT, $GOAT, and $PNUT.

These community-centric meme coins hold exponential growth potential, forming ideologies and deep-rooted engagement. This may be credited to Catslap’s instant success, amassing a $41 million market cap so far!

While it has taken a step back from its last peak, as analysts note 100x potential, now seems like a perfect dip buying opportunity.

Especially as new exchange listings are starting to roll out.

$SLAP also presents a passive income opportunity, offering 40% APY to its staked investors. While the market wanes amidst recent volatility, CatSlap investors have been raking in consistent gains!

Join the CatSlap community on X and Telegram to stay in the loop.