XRP, having failed to overcome the September resistance of $1.4, XRP began to fall again from November, and hit the bottom near 0.6 mark on December 4, with a maximum falling rate of 50%. But the price of XRP/USDT pair quickly bounced back and reached $ 0.8600 the very next day. At the moment, the XRP/USDT pair is moving upward again and hit the $0.85 mark.
From a fundamental point of view, there is still no unambiguous explanation of why Bitcoin as well as the entire crypto market collapsed on the night of December 04.
However, it is worth paying attention to the fact that the fall of the crypto market took place together with the fall of the stock market and the flight of investors from risky assets. The reason for this was the news about China's largest real estate developer Evergrande. The media reported that its founder was summoned to the government because of the possible bankruptcy of the company, which could create serious problems for the entire world economy.
Another reason was the new COVID-19 strain "Omicron", which could provoke panic in the markets. And finally, the statement by Fed Chairman Jerome Powell about a possible faster curtailment of the QE program was another impetus for the fall in prices in the markets.
So far, these are all only indirect reasons that explain such a strong decline in the crypto market. However, on December 16, the next meeting of the US Federal Reserve will take place, and the markets expect the regulator to speed up the procedure for curtailing incentives, and, perhaps, even increase the interest rate. And this means that the renewed increase in the markets so far can only be a correction in the beginning of a bearish trend.
Based on the technical analysis for the XRP/USDT, it suggests that increase is more likely in the coming days. Although, this does not exclude the possibility that this will only be a correction in the beginning of a bearish trend.
On the weekly price chart, we can see that despite a strong price drop a week ago, the price is still above the uptrend line, which means the buyer is gradually returning to the market. Also, between the price chart and the signal line of the RSI indicator, a hidden Bullish divergence has formed, which can also be another signal that the main Bullish trend has not ended yet.
On the daily price chart, we see that each subsequent low is higher than the previous one, which indicates that at least there is a chance that the price will continue to rise in the coming days. The signal line of the RSI indicator also crossed the support from the bottom up, indicating that the price is ready to recover from a strong fall. Another confirmation of growth may be the intersection of the MACD indicator lines, which seems to form a bullish cross.
First Major Support Level: $0.8151
Pivot Level: $0.8360
First Major resistance Level: $0.8614
23.6% FIB Retracement Level: $0.8533