Home CryptocurrencyAltcoin XRP Price Falls Near Critical Support Level as Bitcoin and Cryptocurrency Market Correct

XRP Price Falls Near Critical Support Level as Bitcoin and Cryptocurrency Market Correct

by SuperiorInvest

The price of XRP (XRP) fell 10% in January, as investors book profits and broader bearish sentiment grips the cryptocurrency market.

XRP price now appears poised to suffer further losses in the near term, mainly due to a classic bearish pattern.

XRP price trading below a bearish triangle

On January 3, XRP broke below the support line of a descending triangle at $0.5934, risking a 17% correction.

Now, XRP has been trading sideways below the technical chart pattern and this bearish pattern forms when the price consolidates within a triangle defined by a series of relatively equal lower highs and lows.

A descending triangle resolves after the price falls below its support line, accompanied by an increase in trading volumes. The breakout target of the pattern is obtained by adding the height of the triangle (the thickest part of the triangle) to the downside breakout point.

In the case of XRP, the chart pattern resolved on January 3 when the price fell to $0.5048, its lowest level since October 19, 2023.

XRP/USD daily chart. Source: TradingView

Attempts to raise XRP were thwarted by vendor congestion of the 100-day exponential moving average (EMA), currently at $0.5934. On January 17, the token lost another crucial support level provided by the 200-day EMA at $0.5717.

The moving average convergence and divergence (MACD) indicator moved within the negative region below the neutral line. This suggested that market conditions were still favoring the decline.

As such, if the sell-off continues, a bearish target of $0.4971 could be seen for XRP, around 19% off current levels.

XRP Supply Drives Profits at All-Time Highs

The bearish outlook for XRP could be attributed to profit-taking by sellers. Data from market intelligence firm Santiment shows that Bitcoin (BTC), Ether (ETH), and XRP are currently exhibiting historically high-risk profit levels.

The company published the following graphic from social platform X that says:

“#Bitcoin (83%), #Ethereum (84%), and #XRPLedger (81%) have their respective supplies at historically high-risk profit levels compared to their averages hovering in the 55%-75% range that They date back to 2018.”

Bitcoin, Ethereum and XRP generate profits. Source: Sentiment

This means holders are booking profits on recent rallies as uncertainties emerge.

Related: Price Analysis 15/1: SPX, DXY, BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE

According to Santiment, the price of your supplies in profits once again.”

No plans for an XRP ETF – Blackrock

The approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States on January 10 raised hopes that other spot ETFs would enter the market, including Ethereum ETFs and XRP ETFs.

There are a number of ETH spot ETFs before the US Securities and Exchange Commission with a final decision expected on May 23. While this caused a rally in the price of Ether last week, there is little prospect of the same happening with the XRP ETFs.

BlackRock, the world’s largest asset manager, has said it has no plans to launch a spot XRP exchange-traded fund (ETF).

Citing “people with direct knowledge of the matter,” Fox Business journalist Charles Gasparino shared this news via a post on X that read: “@BlackRock has no plans for a $XRP spot ETF.”

Speculation about an XRP spot ETF was previously sparked by a comment from BlackRock CEO Larry Fink during an interview with Fox Business.

When asked about an XRP ETF, the CEO’s elusive response of “I can’t talk about that!” fueled discussions and hopes among investors and analysts.

Recent events have weakened these hopes, contributing to the bearish sentiment in the XRP market.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.

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