XRP is entering December with a period of unusually calm trading, a stark contrast to recent weeks. Following a bounce from $1.82 in late November, the XRP price has stabilized around $2.20. However, this period of quiet trading may be short-lived, with indications suggesting a potential shift in momentum.
XRP Holds Firm Above Key Support Zone
On the 4-hour chart, XRP has successfully maintained its position above the critical support zone between $2.00 and $2.05. Every attempt to push lower into this range has been met with swift buying pressure, and the price has not revisited the $1.82 low since the recent bounce. This sustained defense of the support area indicates a healthy consolidation phase, even as trading momentum has cooled.
The current steady base around $2.20 is a common pattern that often precedes a significant upward movement. The relative strength index (RSI) further supports this observation, showing that XRP's price has cooled from its mid-November slide. The RSI is currently hovering between 49 and 55, indicating that the asset is neither overbought nor experiencing heavy selling pressure. This neutral zone is frequently a precursor to renewed volatility.
Rising Open Interest and MACD Signals Point to Potential Shift
The open interest versus market cap ratio has begun to climb again after a dip in early November. This trend typically suggests that traders are quietly rebuilding their positions, signaling a potential buildup of activity. While the current rebuilding is not aggressive, the steady increase indicates that the market may be preparing for a new phase of price action.
The balance between long and short positions remains relatively even, a common characteristic preceding a breakout attempt. The market appears to be in a waiting state, not leaning heavily towards either bullish or bearish sentiment.
The MACD histogram has flattened out following a notable bearish run earlier in the month. Although it has not yet turned bullish, the loss of downside momentum is evident. Historically, the XRP price has tended to experience significant movement shortly after the MACD compresses in this manner, especially when occurring near a strong support zone. This pattern reinforces the expectation that December may bring more volatility than the final week of November.
Potential XRP Price Movements in December
If the XRP price can sustain its position above the $2.15–$2.20 range, an early December push towards $2.40 is plausible. A confirmed close above $2.40 would then open a clearer path to the next resistance level at $2.55–$2.60, levels not tested since mid-November.
Should Bitcoin experience strength in the first half of December, the XRP price could potentially extend its gains towards $2.75 before the month concludes.
Conversely, a failure to hold the $2.10 level could lead to a pullback towards $2.00 for a retest. As long as XRP remains above the $1.82 support, the broader uptrend is considered intact, and the outlook remains constructive. XRP enters December in a stable position, supported by improving technical indicators and a firm base around $2.20.
While the XRP chart is not yet displaying strong bullish signals, early signs of building pressure are present. With momentum resetting and traders gradually re-engaging, December could be the month for XRP's next significant price move, particularly if the price stays above the $2.10 level.