XRP Price Experiences Downturn, Shedding 18.5% from Local High
Investors were taken by surprise as the XRP (XRP) price dipped a substantial 18.5% from its most recent high of $0.67 on November 23rd. Current projections suggest the cryptocurrency may face further decline in the next few weeks.
An Extended Correction Predicted for XRP
Discouraging technicals for XRP suggest the cryptocurrency is trending towards an extended correction. Since January 2018, the token has struggled to break through a downward trendline resistance. This issue was still evident this November, indicating a psychological barrier for selling around this line.
Historically, every failed attempt to overcome the descending trendline resistance has led to a drop towards the ascending support trendline. A prediction pinpointing the downside target puts it around the $0.50 mark. This aligns with XRP’s 50-week and 200-week exponential moving averages (EMA). If this pattern continues, the price of XRP could potentially endure a 20% decrease before 2024.
Increasing XRP Transfers to Exchanges
Signals of an impending bear market for XRP are also coming from supply distribution data from its wealthiest cohorts. Since November 20th, there’s been a significant 1.75% increase in the XRP supply held by wallets with a balance of between 1 billion and infinity tokens.
Data suggests that these accounts are predominantly owned by cryptocurrency exchanges, implying that several investors are transferring their XRP holdings to trading platforms in preparation for their sale. Historical patterns confirm that spikes in token supply for this group predict price drops both big and small. Conversely, the recent decline in supply, indicating strong outflows from exchanges, led to XRP’s price rally from $0.55 to $0.68.
Additional XRP fund data suggests a cautious sentiment among institutional investors. Over November, XRP-related investment tracked outflows worth $2.6 million, while other cryptocurrencies like Bitcoin demonstrated significant inflows during the same period.
Is The XRP Bull Run Over?
Despite the current downturn, XRP has had a dramatic year. As of November 23, its price surged 80%, securing remarkable returns for its investors. This growth has been fueled mainly by its partial legal victory against the U.S. Securities and Exchange Commission and the escalating enthusiasm for Spot Bitcoin ETF.
This suggests that the present decrease in XRP’s price might just be a correction within a larger bull market. Some investors may be cashing out their XRP at the local peak to lock in their profits. However, the overall uptrend for XRP appears to remain stable.
Some trading analysts are still optimistic about XRP’s prospects, predicting the coin will resume its bull trend. With predictions ranging from a conservative $0.80 rise in its current value, to a bold anticipation of a $4.20 peak, support for the currency in the face of recent declines appears undeterred.
Please note, this article does not constitute financial advice – investors must conduct their own research and manage risks carefully before making any investment or trading decisions.
