The XRP value motion has performed out notable volatility prior to now eight or so weeks, with intense trading activity not seen in over six years. Following the U.S. presidential election on November 5, 2024, the place Donald Trump secured victory, XRP’s worth surged over 400%, reaching a peak of $2.90 on crypto trade Binance on December 3.
However, the XRP value has skilled a downturn prior to now week. Interestingly, this XRP value correction appears to be taking part in out an ABC correction path, with technical analysis suggesting a extra downturn before the next leg up.
XRP Price Exhibiting ABC Correction
The XRP value correction since reaching the $2.9 mark has been highlighted by an ABC sample that’s nearly nearing its finish. Particularly, this sample constitutes two downtrend waves A and C and a minor uptrend wave B in between.
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According to the worth chart beneath, which is of the XRP/US Dollar pair on the 4-hour candlestick timeframe, the primary downtred wave A kicked off after the XRP value was rejected at resistance round $2.9 on December 3 up till it bottomed out round $2.16 on December 5, representing a 25% decline in two days. From there, it went on a minor uptrend wave B, which indicated that the bulls had been nonetheless in motion. Wave B culminated with a decrease excessive at $2.65 on December 9, which interprets to a different 22% improve in 4 days.
Since reaching this decrease excessive, the XRP value has kicked off one other correction path prior to now 24 hours, giving rise to the notion of corrective wave C now in motion. If an identical development had been to play out like that of wave A, we might see the XRP value correcting by one other 25% from $2.65, which would put the bottom just below $2 earlier than one other bounce up. This could be very logical, contemplating that the $2 value degree serves as a psychological threshold that the bulls could be stopping a break beneath.
Bullish Impulse Suggests Next Move To $2.8 And Beyond
At the time of writing, the XRP value is buying and selling at $2.19 and is down by nearly 10% prior to now 24 hours. The ongoing wave C, which is the ultimate leg of the ABC corrective sample, might proceed on a downtrend till it reaches resistance at $2. Technical indicators help this outlook, particularly the Relative Strength Index (RSI).
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The RSI has slipped beneath its overbought zone for the primary time since November 10. This indicators a cooling off of the bullish momentum that propelled XRP to its latest highs, paving the way in which for the corrective wave C to run its course.
Despite this pullback, market dynamics suggest that a bounce from the $2 degree is a powerful chance. Such a rebound might mark the start of a renewed bullish wave and drive the XRP value towards $2.80 and past. This state of affairs aligns with the broader outlook for XRP, which is still rolling in investor optimism concerning regulatory readability after a new US presidential administration comes into energy in January 2025.
Featured picture created with Dall.E, chart from Tradingview.com
