XRP Loses 200 MA on 4-Hour Chart but Still Eyes Second Highest Monthly Close In 3 Years

XRP gives up a major short-term support level but is still on track to witness its second-highest monthly close in three years.

XRP, like most cryptocurrencies, had an impressive showing over the past month but is now stuck in a Federal Reserve-led market rout, with at least one indicator hinting at more downside in the short term.

XRP Loses 200 MA on 4-Hour Chart

XRP’s recent rout may still have room to the downside after falling 24% from highs near the $2.6 price point to lows below $2 over the past week, at least judging by one key indicator.

As highlighted by crypto analyst “BLOCK BULL” on Thursday, December 26, XRP has fallen below the 200-period moving average on the four-hour chart, hinting at a continued sell-off in the short term as the previous price support now appears to be turning resistance.

XRPUSDT 4 hour candle chart wit 50 and 200 moving averages Source TradingView

The 200 MA measures the average closing price of an asset over the past 200 hours and serves as a trend indicator. An asset is considered to be in an uptrend when it trades above the MA and in a downtrend when it trades below it.

While analysts mostly leverage the indicator on the daily candle chart to confirm long-term trends, it can also help identify short-term market swings on lower time frames, as with XRP in this instance.

Still, the target for XRP’s potential price drop and whether the drop will actually occur remains to be seen.

Meanwhile, as further highlighted by BLOCK BULL, XRP is still likely to end December on a significantly positive note, regardless of what happens.

Record Monthly Close

In a separate post, BLOCK BULL noted that XRP remains on track for a record monthly candle close in December 2024.

The analyst stressed that XRP could have its second-highest monthly close in the past three years as long as it closed above the 82 cents price point. To be sure, XRP is currently trading at $2.18 and is unlikely to have a major price crash to below the $1 mark in the next few days unless driven by a significant external catalyst.

In further positives, XRP remains far above its 50-day and 200-day moving averages on the daily candle chart, suggesting its long-term uptrend could still be intact.

Source