Although the general cryptocurrency space is seeing a downward trend, primarily due to waning excitement surrounding the Bitcoin exchange-traded fund (ETF), XRP stands out as one of the most affected cryptocurrencies. The token has suffered significant losses recently, falling below the $0.60 support level.
In response to this trend, analysts are now anticipating significant declines in XRP’s valuation in the coming days. It is worth noting that in A TradingView In a post on January 12, prominent cryptocurrency analyst Alan Santana noted that, based on recent price action and technical indicators, investors should prepare for the impact, and predicted that Ripple (XRP) will undergo a “very strong correction.”
To arrive at this prediction, the analyst shared several technical analyses. For example, on January 11, a critical rejection point was highlighted below the 50 exponential moving average (MA), where XRP briefly surpassed the $0.6054 level but eventually closed below it.
The upper triangle trend line also saw a touch, indicating a potential reversal. The next day, January 12, saw a full red session, leading Santana to predict a correction based on the day’s market action but remained optimistic about the outlook.
“It will be a very strong correction based on today’s movement. Since this is just the beginning, prepare for the impact. We will have plenty of time to buy at lower prices and enjoy a full year of growth (2024). I will be here to share with you the best time to enter when support is found,” he said. .
Looking at Santana’s analysis from January 5, he highlighted disturbing signs of an impending collapse, noting that XRP has consistently moved below the EMA200 with a weak Relative Strength Index (RSI) of 34.33, indicating bearish momentum.
The descending triangle that has been forming since mid-November, coupled with lower highs and decreasing volume, paints a worrying picture for the XRP market.
“This combination of signals could lead to a significant decline. “At first it was slow, as is happening now, and then there was a sudden collapse to liquidate all the long positions,” he added.
XRP struggles to recover $1
It is worth noting that XRP was unable to make significant strides towards the crucial $1 mark despite high expectations following partial legal clarity confirming its non-security status in the Securities and Exchange Commission (SEC) case.
The ongoing situation remains a pivotal factor affecting future XRP price movements, as a final resolution has not been reached yet.
In its latest update on January 11, the SEC took steps to force Ripple to provide documents and financial information related to its XRP sales. The SEC envisions this procedure as necessary to determine necessary remedies. Overall, the outcome of this legal development is expected to impact the trajectory of XRP significantly.
Despite the prevailing bearish price movement, on-chain data indicates growing social interest in XRP. according to Data From cryptocurrency analysis platform Santiment, there is a noticeable bullish trend towards XRP and Bitcoin. This indicates a potential shift in market sentiment, adding a layer of complexity to the current dynamics impacting XRP’s performance.
“Time since May 2022. There is also a noticeable bullish bias towards Bitcoin and XRPNetwork. While traders discuss the possibility of an ETF or
XRP price analysis
As of press time, XRP is trading at $0.58, reflecting gains of more than 1% over the past 24 hours. Over the past seven days, the token has risen by 2%.
Regarding technical analysis, a summary of metrics for one day was obtained from TradingView It is in line with “sell” sentiment, registering at 14. Moving averages indicate “strong sell” at 12, and oscillators recommend “sell” at 2.
For now, XRP investors are hoping that the correction does not extend below the $0.5 mark.
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