The price of XRP will struggle to maintain the momentum of the December increase

After hitting a six-year high on December 17, XRP's price has suffered a significant decline, dropping more than 8% in the past seven days. It can determine the short-term direction.

Despite this pullback, momentum indicators such as the RSI and CMF suggest mixed signals, with some signs of a rebound not enough to confirm a strong bullish trend. As traders will be watching closely, whether XRP can hold support or retrace its December rally will be crucial in shaping its next moves.

XRP RSI is currently neutral.

XRP's Relative Strength Index (RSI) rose to 43.12, a sharp rise from below 20 three days ago. This significant increase indicates a strong momentum shift. When the RSI is below 20, it often indicates that the asset is deeply oversold, which can indicate strong bearish sentiment or potential among market participants.

The rebound to 43.12 reflects a recovery in buying interest, which suggests that traders may enter the lows, which they see as an opportunity.

RSI is a momentum oscillator used to assess the speed and magnitude of recent price changes. It ranges from 0 to 100, with key limits typically 30 and 70. Readings below 30 indicate oversold conditions, where the price has fallen too quickly and may be due to a reversal or collapse.

Conversely, readings above 70 indicate overbought conditions, where prices are overbought and may face downward pressure. XRP RSI at 43.12 puts it in neutral territory, neither overbought nor overbought.

XRP CMF is positive, but not that strong.

The Chaikin Money Flow (CMF) for XRP is currently at 0.04, a moderate level indicating a slight dominance of the buying pressure. This comes after reaching a high of 0.11 the day before, indicating a strong rally at that point, and a significant recovery from -0.13 on December 20, where selling pressure prevailed.

A move from negative to positive values ​​underpins market sentiment, with capital flows skewing towards buyers over the past few days. However, the drop from 0.11 to 0.04 shows that while interest is buying, it has weakened somewhat, which could indicate a consolidation phase for XRP in the short term.

CMF is an indicator used to assess the strength of buying or selling pressure by analyzing both price and volume over a given period of time. It ranges between -1 and +1, with positive values ​​reflecting net buying pressure and negative values ​​reflecting net selling pressure. A CMF above 0 typically indicates that more money is flowing into the asset, indicating accumulation, while a CMF below 0 indicates a spread.

The current CMF of 0.04 XRP, being slightly above zero, indicates a slightly stronger buying movement than selling. While it indicates continued interest from buyers, a decline from 0.11 may indicate a weakening of the bullish momentum, which may result in a sideways price movement or require a stronger tone to sustain any upward trend.

XRP Price Prediction: Can XRP Price Go Below $2?

The support level at $2.17 is crucial for XRP's current price stability. If this level fails to hold, the next strong support identified at $1.89 could trigger a significant move lower. This represents a 13% correction, which may turn market sentiment into depression and lead to further selling pressure.

Support levels like $2.17 often act as psychological and technical barriers that protect buyers against a deeper decline.

On the other hand, if the price of XRP is able to regain the gains it experienced in early December, when it hit a six-year high, the outlook could be more optimistic.

A bullish momentum recovery could see a resistance level nearby as XRP first tests $2.33. If the uptrend consolidates, additional targets at $2.53 and $2.66 may come into play.