- Ripple (XRP) faces market challenges, witnessing a three-year low against Bitcoin amid speculation about the SEC’s stance on spot Bitcoin ETFs.
- In the midst of market turbulence, Ripple’s price forms a rising wedge pattern, experiencing a 20% drop on January 3 but finding support at $0.4973.
In the recent cryptocurrency market turmoil, Ripple (XRP) experienced a decline in price due to market speculation surrounding the potential rejection of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). Notably, unlike other altcoins, Ripple’s price reaction occurred despite the token not having seen a previous upward movement like the rest of the market.
XRP Hits Three-Year Low Against Bitcoin The price of Ripple (XRP) plummeted to a three-year low against Bitcoin as the market responded to a report from Matrixport. The token reached levels as low as $0.5000, a range last witnessed when the SEC filed a lawsuit against XRP, classifying it as a security.
Ripple Price Displays Pattern Amidst Market Turbulence As part of an unfolding rising wedge pattern, Ripple’s price experienced a 20% drop during the January 3 trading session, ultimately finding support at $0.4973. This support level was reinforced by an ascending trendline, suggesting a potential rebound. With the buyer congestion at this level holding firm, there is anticipation that XRP’s price could see an upward push in the near future.
As of the press time, XRP is trading at 9.44% down at a price of $0.5754 with a market cap of $31.1 billion. Last year, Ripple scored major victories against the U.S. SEC in their ongoing legal battle. The court has favored Ripple, which aims to prove that the sale of XRP doesn’t violate securities laws. Also, the first quarter of 2024 will be crucial for XRP as there are some breakthrough announcements lined up.
Will the XRP Price Recover?
In the current assessment of Ripple’s (XRP) price movements, several key technical indicators suggest a shift in favor of bullish momentum. Notably, the Average Directional Index (ADX), which measures trend strength, is indicating an upward trend, highlighting increased buying pressure. Additionally, the Relative Strength Index (RSI) has shifted away from its previous downward trajectory, reinforcing the bullish outlook.
Should the upward momentum persist, Ripple’s price has the potential to surpass the lower boundary of the rising wedge pattern, reaching beyond the psychological level of $0.6000. Further gains could propel XRP above the upper boundary of the wedge, aiming for the psychological milestone of $0.7000. Such a move would signify a notable 20% increase from the current levels.
Conversely, in the face of heightened selling pressure, Ripple’s price may experience a decline, revisiting the January 3 lows of $0.5000. A decisive break and closure below this level could open the path for further downside, with the possibility of XRP extending its decline to the range low of $0.3562.
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