- Ripple’s XRP recently plunged to a three-year low against Bitcoin, triggered by a Matrixport report and market concerns about the SEC’s stance on spot Bitcoin ETFs.
- Despite the setback, signs of recovery emerge as technical indicators suggest a potential bullish reversal, offering hope for XRP’s recovery in the volatile crypto landscape.
Ripple (XRP) finds itself at the epicenter of the recent market upheaval, with its price hitting a three-year low against Bitcoin. The catalyst behind this plunge was the Matrixport report, which triggered a cascade of massive liquidations across the crypto landscape.
In a surprising move, XRP dropped nearly 20%, contrasting with the rest of the market that experienced a surge. The plunge was particularly notable as Ripple hadn’t witnessed a preceding upward trajectory like its counterparts.
Ripple’s Three-Year Low Against Bitcoin
The Matrixport report sent shockwaves through the crypto space, causing Ripple’s price to plummet to $0.5000, a level not seen since the SEC’s legal action declaring XRP a security. Executing a rising wedge pattern, XRP experienced a 20% drop during the January 3 trading session, finding support at $0.4973, reinforced by an ascending trendline.
Despite the recent setback, there’s hope for XRP as it approaches oversold territory. The Average Directional Index (ADX) indicator, measuring trend strength, is trending northward, signaling potential buying pressure. The Relative Strength Index (RSI) also deviates from its previous southbound trajectory, further supporting the notion of a bullish reversal.
Signs of Recovery and Potential Upside
If the bullish momentum gains traction, Ripple’s price could reclaim levels above the lower boundary of the rising wedge pattern, surpassing the psychological $0.6000 mark. Further upward movement may see XRP breach the upper boundary of the wedge, aiming for the $0.7000 psychological level—a potential 20% climb from current levels.
Conversely, heightened selling pressure could extend the downturn, pushing XRP to revisit the January 3 lows of $0.5000. A decisive break below this level might open the floodgates for a more substantial decline, with XRP potentially targeting the $0.3562 range low.
What is Ripple?
Ripple, a payments company specializing in cross-border remittances, leverages blockchain technology. RippleNet, its payment transfer network, is open to global financial institutions. The company also utilizes the XRP token, further entwining its fate with the volatility of the cryptocurrency market.
As Ripple navigates these turbulent waters, investors and enthusiasts keenly await the SEC’s decision on spot Bitcoin ETFs, a pivotal factor that could sway the market dynamics and influence XRP’s trajectory in the coming weeks.
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