Prepare for a significant XRP correction as the market anticipates a decline in valuation for the cryptocurrency. Despite the overall bearish trend in the crypto space, XRP has been particularly affected, with recent losses pushing its price below the $0.60 support level. This has led analysts to predict a substantial correction for XRP in the coming days.
Prominent cryptocurrency analyst Alan Santana has pointed out that recent price movements and technical indicators indicate a strong correction is on the horizon. Santana highlighted a critical rejection point just below the Exponential Moving Average 50 (MA), where XRP briefly exceeded $0.6054 but ultimately closed below it. Additionally, the upper triangle trendline also saw a touch, suggesting a potential reversal in the market.
Santana predicts a significant correction based on the day’s market action but remains optimistic about future growth opportunities. He believes that there will be ample opportunity to buy at lower prices, setting the stage for a year of growth in 2024.
Looking back to Santana’s earlier analysis from January 5, he warned of an imminent crash for XRP, citing consistent movements below EMA200 and a weak Relative Strength Index (RSI). The descending triangle formed since mid-November, along with lower highs and decreasing volume, further indicates a concerning outlook for XRP.
Despite partial legal clarity affirming its non-security status, XRP has struggled to reclaim the crucial $1 mark. The ongoing Securities and Exchange Commission (SEC) case against Ripple continues to impact XRP’s price movements, with no conclusive resolution reached yet. In the latest update on January 11, the SEC has taken steps to obtain financial documents and information from Ripple, signaling the importance of these details in determining appropriate remedies. The outcome of this legal development will significantly affect XRP’s trajectory.
Interestingly, despite the bearish price movement, on-chain data shows a growing social interest in XRP. Crypto analysis platform Santiment reports a noticeable bullish sentiment towards XRP and Bitcoin, potentially indicating a shift in market sentiment. This adds complexity to the current dynamics influencing XRP’s performance.
At the time of writing, XRP is trading at $0.58, exhibiting a slight gain in the last 24 hours and a 2% rally in the past seven days. Technical analysis suggests a ‘sell’ sentiment based on one-day gauges and moving averages, indicating a correction may continue. XRP investors will be closely monitoring whether the correction extends below the $0.5 mark.
Disclaimer: This content should not be considered investment advice, as investing carries inherent risks.