XRP (XRP) price has fallen 18.5% from its local high of $0.67 on November 23. Moreover, the cryptocurrency looks set to suffer more sell-offs in the coming weeks.
XRP Technology Hints at Further Corrections
XRP has been unable to break above the downtrend line resistance since January 2018. Moreover, it also failed to break above this trendline resistance in November 2023, suggesting psychological selling pressure near this line.
Historically, every bearish rejection following a test of descending trendline resistance has resulted in a decline toward the ascending support trendline.
Downside targets emerge around $0.50, interestingly closer to XRP’s 50-week (red wave) and 200-week (blue wave) exponential moving averages (EMA). Therefore, if this fractal occurs, the price of XRP could fall by 20% by 2024.
Potential XRP transfer to exchanges
XRP’s bearish outlook is getting more clues from data tracking its supply distribution among its wealthiest people.
Notably, XRP supply held by addresses with balances between 1 billion and infinity tokens (black wave) has increased by 1.75% since November 20.
A large portion of these addresses likely belong to cryptocurrency exchanges, suggesting that investors have moved their XRP holdings to exchanges for sale.
Historical data shows that peaks in the infinite population of 1 billion XRP tokens are preceded by small and large price drops (red waves). Conversely, the supply of this group has recently declined before XRP price rose from $0.55 to $0.68, indicating exchange outflows.
Additionally, XRP fund data shows de-risking behavior among institutional investors. According to data, in November, outflows from XRP-related investment vehicles reached $2.6 million. Coin stocks.
Interestingly, other cryptocurrencies also saw inflows during the same period, with Bitcoin topping the list.
Is the XRP bull run over?
XRP price has soared in 2023, delivering investors an 80% return as of November 23. Its partial SEC legal victory and excitement over a spot Bitcoin ETF were the biggest contributors to its annual gains.
Related: Why is XRP Price Rising Today?
Therefore, the continued decline in XRP price looks like a bullish correction. In other words, some investors are selling XRP close to local price peaks to make a profit. In other words, XRP’s overall upward trend remains intact.
Trade analysts expect XRP to resume its bullish trend, with Muro saying it will next rise to $0.80, a 30% increase from current price levels.
Just like ETH and SOL, breakout and ready to go, whether or not the consolidation lows are retested pic.twitter.com/92pIeOZZP7
— Muro (@MuroCrypto) November 23, 2023
Crypto Cow expect XRP will reach $4.20 in 2024, citing the cryptocurrency’s past breakout after months of consolidation in a triangle pattern.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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