As Bitcoin and the crypto market are correct, the price of XRP will fall to a critical support level
The price of XRP fell 10% in January, as investors booked profits and a broader pessimism gripped the cryptocurrency market.
XRP price now looks primed for further losses in the short term, mainly due to a classic bearish pattern.
XRP price moves below the bearish triangle.
On January 3, XRP broke below the descending triangle support line at $0.5934, threatening a 17% correction.
Right now, XRP has been trading sideways below a technical chart pattern and this bearish pattern is formed when the price consolidates in a triangle defined by a series of low highs and relatively low lows.
A descending triangle is resolved after the price breaks below the support line, which is associated with an increase in trading volume. A pattern breakout target is found by adding the height of the triangle (the thickest part of the triangle) to the breakout point.
In the case of XRP, the chart pattern was resolved on January 3 as the price dropped to $0.5048, the lowest level since October 19, 2023.
Attempts to lift XRP have been frustrated by bearish congestion from the 100-day Exponential Moving Average (EMA) currently at $0.5934. On January 17, the token lost another critical support level at the 200-day EMA at $0.5717.
The moving average converging divergence (MACD) indicator has moved in negative territory below the neutral line. This suggests that the market situation still supports the lower side.
As such, if the sell-off continues, a hidden target of $0.4971 can be seen for XRP, a 19% drop from current levels.
XRP supply at historical levels in profit
A pessimistic view of XRP may be profit booking by sellers. Data from market intelligence firm Sentiment shows that Bitcoin (BTC), Ether (ETH) and XRP are currently showing historically high risk-adjusted profit levels.
The company released the following X social platform chart;
“#Bitcoin (83%), #Ethereum (84%) and #XRPLedger (81%) have their respective offerings at historically high leverage levels compared to averages hovering in the 55%-75% range in 2018.”
This means that holders are taking profits on recent rallies as uncertainty is creeping in.
Related: Price Analysis 1/15: SPX, DXY, BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE
According to Santiment, the price of XRP may still recover “due to more exposure from #ETF and other positive news” but a good sign for continued long-term growth is a breach of supplies below 75% profit. one more time”
No plans for XRP ETF — Blackrock.
The January 10 approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States has raised hopes of other spot ETFs entering the market, including the Ethereum ETF and XRP ETF.
A final decision is expected on May 23. There are several spot ETFs before the US Securities and Exchange Commission. While this led to a rally in Ether's price last week, the chances of the same happening for XRP ETFs are slim.
BlackRock, the world's largest asset manager, has said it has no plans to launch a spot XRP exchange-traded fund (ETF).
“@BlackRock has no plans for a spot $XRP ETF,” Fox Business reporter Charles Gasparino shared the news in a post on X, citing people with direct knowledge of the matter.
SCOOP: @BlackRock has no plans for a spot $XRP ETF, according to people with direct knowledge of the matter
— Charles Gasparino (@CGasparino) January 18, 2024
Speculation on the one-spot XRP ETF was previously fueled by comments from BlackRock CEO Larry Fink during a Fox Business interview.
When asked about the XRP ETF, he said, “I can't talk about that!” The CEO's ambiguous response has fueled discussions and speculation among investors and analysts.
Recent developments have delayed these expectations, contributing to the depressed mood in the XRP market.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
