- XRP faces a potential downtrend as it recently broke below a bearish triangle pattern, signaling a 17% correction.
- The article highlights the technical analysis, profit-booking dynamics, and dashed hopes for an XRP ETF, contributing to the prevailing bearish sentiment in the cryptocurrency market.
Cryptocurrency enthusiasts have been closely monitoring the recent downturn in XRP’s price, which seems poised for further losses in the short term. The cryptocurrency has fallen near a critical support level, triggering concerns among investors and analysts.
XRP Succumbs to Bearish Triangle Pattern
On January 3, XRP broke below the support line of a descending triangle at $0.5934, signaling a potential 17% correction. This classic bearish pattern is characterized by the price consolidating inside a triangle formed by lower highs and relatively equal lows. The pattern’s resolution typically involves a break below the support line, accompanied by increased trading volumes.
Despite attempts to reverse the trend, XRP has been trading sideways below this technical chart pattern. The recent drop on January 3 saw the price hitting $0.5048, marking its lowest level since October 19, 2023. The failure to surpass the 100-day exponential moving average (EMA) at $0.5934 and the subsequent loss of the 200-day EMA at $0.5717 further intensified concerns.
XRP Targets $0.4971 – A 19% Dip from Current Levels
The Moving Average Convergence Divergence (MACD) indicator, positioned in the negative region below the neutral line, suggests ongoing market conditions favor the downside. If the sell-off persists, XRP could face a bearish target of $0.4971, reflecting a potential 19% decline from current levels.
XRP Supply Dynamics and Profit-Booking
Market intelligence from Santiment reveals profit-booking by XRP holders, contributing to the current bearish outlook. Recent data illustrates that a considerable portion of XRP supply is in profit, as depicted in Santiment’s chart shared on social platforms.
While the potential for a recovery still exists, Santiment emphasizes the importance of monitoring the profit margins. Continued long-term growth would be signaled by a breach below 75% of the supplies in profit.
XRP ETF Speculations and Dashed Hopes
Hopes for an XRP Exchange-Traded Fund (ETF) were fueled by speculation after BlackRock CEO Larry Fink’s cryptic response during a Fox Business interview. However, recent developments suggest otherwise. BlackRock, the world’s largest asset manager, has reportedly confirmed it has no plans to launch a spot XRP ETF. This news, shared by Fox Business journalist Charles Gasparino, has dampened investor enthusiasm and contributed to the prevailing bearish sentiment in the XRP market.
As the crypto market experiences corrections, XRP investors are closely watching key support levels and external factors that could influence the coin’s future trajectory.
