The price of XRP faces a Q4 collapse and a 20% drop
The price of XRP has dropped 18.5% from the local high of $0.67 on November 23, and it appears that the cryptocurrency will undergo further sales in the coming weeks.
XRP technicians suggest an extended correction
XRP (XRP) failed to break above the descending trendline resistance from January 2018, and in November 2023 it also failed to find a unique breakout indicating psychological selling pressure around the line.
After testing the resistance of the descending trendline, each bearish rejection resulted in a decline to the historically uptrending support trend.
The downside target is seen around $0.50, remarkably close to XRP's 50-week (red wave) and 200-week (blue wave) exponential moving averages (EMAs). So, if this fractal plays out there is a risk of XRP price dropping by 20% before 2024.
Possible XRP transfers to exchanges
XRP's hidden view selects additional signals from the supply chain that track the richest groups of data.
Specifically, the supply of XRP held by addresses with balances between 1 billion and infinity tokens (black wave) has increased by 1.75% since November 20th.
A large chunk of these addresses could be crypto exchanges, indicating that investors have been moving their XRP holdings to trading platforms for sale.
Historical data shows that appointments in the 1 billion-infinity XRP token pool precede both moderate and severe price declines (red tides). On the contrary, the group's recent drop in supply, indicating the currency's exit, has ranged from $0.55 to $0.68 before XRP's price rally.
Additionally, the XRP fund data shows a bullish behavior among institutional investors. In November, XRP-related investment vehicles saw $2.6 million in outflows, according to CoinShares.
Interestingly, other cryptocurrencies have seen inflows over the same period, with Bitcoin (BTC) leading the chart.
Is the XRP bull over?
The price of XRP increased in 2023, returning 80% to its investors as of November 23rd. A partial legal victory at the U.S. Securities and Exchange Commission and the spot Bitcoin ETF euphoria contributed the most to its annual gains.
Related: Why Is XRP Price Rising Today?
As a result, the ongoing decline in the price of XRP looks like a bull market correction. In other words, some investors are selling XRP at their local price levels to maintain profitability, but the overall trend remains unchanged.
Business analysts predict that XRP will resume the bull trend, Muro will then increase to $ 0.80, an increase of 30% from the current price level.
$XRP
Just like ETH and SOL, it's hacked, ready to go, with or without minimal reinforcement testing pic.twitter.com/92pIeOZZP7
— Wall (@WallCrypto) November 23,
Cryptobull expects XRP to reach $4.20 in 2024, citing the cryptocurrency's past triangle formations months later.
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.
