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XRP's 0.58% Price Increase to $0.5195: Key Insights for December 26, 2022

Albert Morgan

— 3 min read

XRP, the native cryptocurrency of the XRP Ledger, saw its price increase by 0.58% over the past 24 hours to $0.5195. With a market capitalization of $27.69 billion, XRP remains one of the top cryptocurrencies by market cap. In this technical analysis, we'll examine key metrics like trading volume, short-term and long-term price performance, and make a prediction on where XRP could be headed in the coming year.

Over the past 24 hours, XRP saw a trading volume of $713.04 million. This is considered average volume for XRP and indicates a decent amount of interest and activity. The 1-hour price change was minor at +0.19%, while the 7-day change was more significant at +3.00%. This shows XRP has some positive short-term momentum behind it.

Zooming out further, the 1-month and 6-month percentage changes paint a mixed picture. The +3.96% 1-month change shows ongoing upward momentum over the past 30 days. However, the minimal +0.14% 6-month change indicates XRP has struggled to gain ground over the longer term.

When analyzing the price chart, we see XRP remains stuck in a trading range between approximately $0.42 and $0.60 for most of 2022. The current price of $0.5195 puts it in the upper half of this range. XRP will need to break out above resistance at $0.60 to signal a potential new uptrend.

What's Behind XRP's Recent Positive Momentum?

XRP has shown some positive momentum in December, which can likely be attributed to a few key factors:

  • Improving sentiment around the SEC lawsuit - Ripple has scored some wins in its legal battle with the SEC over whether XRP is an unregistered security. As the case drags on, there is growing optimism Ripple may prevail. This reduces an overhang that has weighed on XRP's price.
  • Altcoin strength - The overall alternative coin market has rallied in December, with cryptos like Ethereum and Litecoin seeing strong gains. XRP tends to track the broader altcoin market, so this rising tide has lifted XRP as well.
  • Technical breakout - From a technical perspective, XRP broke through its 50-day moving average in early December after finding support near $0.40. This resolved a brief period of weakness and reignited buyer interest.

Overall, the combination of improving sentiment, altcoin strength, and technical factors helps explain XRP's renewed positive momentum as we wrap up 2022.

Price Prediction for XRP in 2023

Looking ahead to 2023, I expect XRP will break out of its long-term trading range between $0.40 and $0.60. Here are some factors that could drive further upside for XRP next year:

  • The SEC lawsuit will reach a conclusion, removing a major headwind for XRP. A settlement or Ripple victory would likely catapult XRP higher.
  • Adoption of XRP and the XRP Ledger will continue expanding, especially in emerging use cases like NFTs and decentralized finance (DeFi).
  • XRP remains undervalued relative to top cryptocurrencies like Ethereum. Its utility and real-world use position it for upside as investors re-evaluate altcoin valuations.
  • From a technical perspective, XRP appears poised to break multi-year resistance around $0.60. A decisive breakout could spark a major rally back toward XRP's all-time high around $3.40.

Taking these factors into account, I expect XRP will trade between $1.00-$2.00 at some point in 2023. This would represent upside of 90-285% from the current price around $0.52. Patience will be key, as parabolic rallies are often preceded by periods of accumulation and consolidation. But the long-term investment thesis for XRP remains intact.

How Can New Traders Capitalize on XRP's Growth Potential?

For new crypto traders interested in trading or investing in XRP, I recommend:

  • Dollar-cost averaging - Given XRP's volatility, dollar-cost average by making periodic buys over time rather than in one lump sum. This helps manage risk.
  • Laddering buy/sell orders - Place layered buy and sell orders at different support and resistance levels to take advantage of XRP swings.
  • Hold for the long-term - XRP has major growth potential in 2023-2025. Hold a core position for the long-term while trading around the edges.

Patience and discipline are essential when trading a volatile asset like XRP. But its strong utility and use cases make it a worthy long-term investment if properly managed.

Conclusion

XRP heads into 2023 ready for a breakout after consolidating for most of 2022. Key drivers like resolution of the SEC case, expanding utility, undervalued price comparisons, and bullish technicals all suggest significant upside potential in the year ahead. New traders can seize opportunities by dollar-cost averaging, ladder orders, and holding a core long-term position. With the right strategy, XRP looks poised for strong growth as adoption and use cases continue evolving.

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