Despite being one of the most trending coins in 2024, XRP has struggled to maintain momentum as the year rounds up. The Ripple-backed coin rocketed by 400% in less than a month following the November 2024 election. All looked well for the coin as several analysts projected double and triple figures for EOY.
However, its current trajectory has raised concerns and questions about the possibility of a positive start to 2025. Consequently, investors are curious, asking if it is time to sell XRP or buy the dip.
XRP Technicals Signals Possible Continous Decline
Over the past few weeks, XRP has consolidated between the $2 and $3 range, signaling a relatively stable movement. However, a significant fluctuation might be expected soon as technical indicators hint at a possible decline in the short term.
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According to the outlook, XRP’s relative strength index (RSI) rests around 43, a few points below the neutral threshold of 50, and 13 points above the oversold level of 30. This figure demonstrates that XRP is neither overbought nor oversold. Nevertheless, a further drop in the RSI toward 30 would lead to a continuous decline in the XRP price.
This trajectory could be reversed if XRP moves into the oversold region, however, the visible decline indicates that the bears are still in control of the market.
XRP RSI chart | Source: Tradingview
Moreover, the above chart also shows the MACD value for XRP at -0.036 with a clear downtrend solidifying the bearish outlook. Notably, the MACD line is currently below the signal line which indicates that XRP is more bearish in the short term than in the long term.
Could XRP Reverse this Trend?
Meanwhile, investors are hopeful for a possible reversal amid the downtrend. Going into 2025, several factors could help XRP take a different course. Precisely, the incoming crypto-friendly administration led by Donald Trump could ease the stringent regulations overseeing the crypto industry.
Also, the anticipated change of the SEC leadership, with Paul Atkins as chair, could lead to a possible dismissal of the prolonged Ripple vs SEC lawsuit. While this outcome is not confirmed, several key industry figures have predicted the likely scenario.
A favorable end to the lawsuit could trigger a massive rally toward heights not previously reached. The question of whether to sell your XRP holding or buy more during this dip is entirely up to your trading strategy.
Investors who are focused on the long-term would likely seize the opportunity to amass more XRP, positioning for a possible uptrend in the future. However, short-term investors might be on the lookout for other projects that could offer faster profits. At the time of writing, XRP traded at $2.12, representing a 5.41% increase in the last 24 hours.
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