On December 2nd, the price of XRP reached an all-time high of $2.72 in 6 years. This made it one of the altcoins that outperformed Bitcoin (BTC) this quarter. This development coincided with a surge in XRP DEX trading volume to $61 million, fueling speculation that the token could lead the altcoin season.
At a certain point, attempts were made to maintain profits, but the situation has changed over the past 24 hours. The current XRP price is trading at $2.21. The reasons why altcoins may find it difficult to reach new all-time highs before the end of 2024 are as follows.
Altcoin Season Adjustment... Decrease in DEX Trading
Over the past 90 days, the price of XRP has risen by 282%, making it a standout performer among altcoins. However, the token's momentum has now weakened, with a 6.09% decline in the past 24 hours.
The Altcoin Season Index confirms an altcoin season when over 75% of the top 50 non-BTC coins outperform Bitcoin. This index recently reached 78, indicating an undeniable altcoin season. During this period, XRP was highlighted as a major contributor, along with Hedera (HBAR) and BitGet Token (BGB).
However, the recent price declines of several altcoins, including XRP, have caused the Altcoin Season Index to drop to 47, reflecting a shift to a neutral sentiment. If this momentum continues to weaken, the XRP price risks falling below $2.
The decline in XRP DEX trading volume is another indicator supporting this extended downtrend. DEX trading volume measures the value of cryptocurrencies traded on the XRP Ledger (XRPL) over a certain period.
For those unfamiliar, XRPL is the decentralized public Blockchain used by the project to facilitate XRP transactions and fast settlements in various currencies. Increasing DEX trading volume indicates growing demand for the token, while decreasing DEX trading volume indicates the opposite.
As mentioned earlier, the XRP DEX trading volume reached $61 million on December 2nd. However, this figure has recently declined by around $58 million. If this trend continues, the XRP price may face persistent downward pressure.
XRP Price Prediction: Unlikely to Reach All-Time High Soon
On the 4-hour XRP/USD chart, the altcoin has encountered a death cross. A death cross occurs when the longer exponential moving average (EMA) crosses below the shorter one, which is a bearish signal.
The opposite is called a golden cross, where the longer EMA crosses above the shorter one. As can be seen below, the 50 EMA (yellow) has risen above the 20 EMA (blue), and the price has also fallen below these indicators.
If this trend continues, the value of XRP could decline to $1.75. However, if sentiment turns bullish and the EMAs form a golden cross, the trend could reverse. In that case, the XRP price could rise to $2.90.
