XRP has been stuck in a prolonged consolidation phase, preventing the altcoin from reaching the $3.00 mark this year.
As January 2025 approaches, the likelihood of XRP crossing this milestone remains slim, with market conditions and technical indicators suggesting a delay in any substantial rebound.
XRP faces problems
The NVT (Network Value to Transaction) ratio indicates that the value of the XRP network currently exceeds its transaction value. Historically, this imbalance has preceded corrections, as inflated network valuations are often followed by losses for investors.
Such market conditions create an environment in which recovery becomes difficult. Without increased transactional activity to support the value of its network, XRP faces increased risks of prolonged stagnation or potential downward movement, limiting its near-term growth prospects.
The MACD (Moving Average Convergence Divergence) indicator adds to the bearish outlook, with no signs of a bullish crossover in sight. This lack of momentum is unlikely to change in early 2025, with the bearish crossover reflecting broader negative market signals.
This technical indicator suggests continued downward pressure on XRP. Until a reversal occurs, the altcoin may struggle to break out of its current consolidation range and could face further declines if selling pressure intensifies.
XRP Price Prediction: Staying Afloat
XRP has been consolidating over the past month, remaining stuck below the $2.73 resistance level while hovering above the $2.00 support. This trend reflects an earlier period of consolidation that lasted over three months before XRP finally recovered in November this year, raising the possibility of a similar timeline.
If history repeats itself, XRP may not rise above $3.00 until the end of February 2025. During this extended consolidation, any significant sell-off could push the altcoin as high as $1.28, worsening losses for investors.
However, a change in overall market sentiment could alter the trajectory of XRP. Breaking the $2.73 resistance level would likely push the price to $3.00, invalidating the bearish outlook and signaling a new bullish phase for the altcoin that could even push XRP to a new all-time high beyond 3.00. $.31.
The article XRP Struggles to Break $3.00 Amid Prolonged Market Consolidation appeared first on BeInCrypto.
