December 12th is the big date for XRP and it’s TODAY. There was a lot of demand for XRP prior to this date. This is due to the fact everyone will get a one-to-1 transfer. Why? Because this is the day that the Flare Network for the Spark token Transfer is happening for all those who have XRP in an account from a supported brokerage. What happens after the transfer is complete? Is there going to be a huge supply of people leaving their positions? Let’s talk about this today.
XRP Technical Analysis
Everyone bought XRP in anticipation of the Airdrop day, which saw it rise 230%. In the first stage, most people who had opened positions earlier in the year at USD 25 cents took some profits and exited their positions. The price of XRP adjusted, and people have been anticipating the Airdrop day, which has resulted in the price staying above USD 50 cents ever since.
Figure 1 clearly shows a triangle formation. This signalizes a crucial moment. The current price for XRP is approximately USD 52 cents. This coincidentally is a strong support zone (blue line). The current price of XRP has touched the lower end of the triangle. This day is very worrying for XRP. People will most likely sell XRP immediately after the Airdrop, creating a large sudden supply and causing a crash in prices.
If XRP’s price breaks the lower triangle, we can expect it to fall to USD 42 cents (figure 2). This is provided we have some support from BTC or other cryptos. Even the USD 42 cents area could see a breakout to lower areas if the market crashes again.
Will the XRP price rise to the moon?
It is difficult to predict the future move of XRP, especially if we don’t see a price-action at midnight, when volatility is high. However, the XRP price is often behind the cryptocurrency market. If Bitcoin reaches its USD20,000 price target, we will be able to predict the general price direction.
If the 20k race happens, we can assume another rally for XRP. However, this rally will only occur after the current price corrects further because of the XRP saleoff that may take place post-Airdrop event.
Risk Management Levels
A skilled trader or investor is able to manage his risk and minimize his losses. He also knows when to exit. It is important to be aware of the following levels:
Break of USD 50 Cents – Signifying a further drop in prices. USD 42 Cents – The next support level that the price might reach in the event of a large selloff
USD 60 Cents – This is the top of the triangle. A breakout could signal another rally.