XRP price approaching critical support level as Bitcoin and cryptocurrency market corrects.

XRP's price decreases significantly, reducing most of its recent gains and dissolving investors' hopes for an XRP ETF.

XRP Price Plummets as Bearish Pattern Emerges

XRP, the cryptocurrency beloved by many, has experienced a significant drop in price this January. As investors cash in on their profits and bearish sentiment permeates the market, XRP has fallen by a whopping 10%. 📉

But that’s not the end of the bad news. There’s a classic bearish pattern emerging in the XRP price, suggesting that further losses may be on the horizon. It’s like adding insult to injury for XRP enthusiasts. 🐻

XRP price trapped in a bearish triangle 🐻🔺

On January 3rd, XRP broke below the support line of a descending triangle at $0.5934, putting the digital asset at risk of a 17% correction. Since then, XRP has been trading sideways within this technical chart pattern.

A descending triangle occurs when the price consolidates within a triangle formation defined by lower highs and equal lows. To make matters worse, this bearish pattern is typically resolved when the price breaks below the support line, accompanied by an increase in trading volumes. 📊

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In the case of XRP, the chart pattern was officially resolved on January 3rd when the price plummeted to $0.5048, its lowest level since October 19, 2023. The XRP price is currently struggling to recover, hindered by congestion caused by the 100-day exponential moving average (EMA) at $0.5934. On January 17th, XRP lost another crucial support level provided by the 200-day EMA at $0.5717. The moving average convergence divergence (MACD) indicator further confirms the bearish sentiment, remaining in the negative region below the neutral line.

With all these factors aligning against XRP, it wouldn’t be remiss to expect further losses. If the sell-off continues, XRP may reach a bearish target of $0.4971, marking a 19% decrease from its current levels. 📉💔

XRP holders cashing in on profit 🤑💥

One reason for XRP’s bearish outlook is profit-booking by sellers. According to data from market intelligence firm Santiment, Bitcoin (BTC), Ether (ETH), and XRP are currently experiencing historically high levels of profit. 📈🤑

Santiment’s chart on social media reveals that Bitcoin, Ethereum, and XRP supplies are currently in profit at levels that exceed historical averages. The firm states, “Bitcoin (83%), Ethereum (84%), and XRPLedger (81%) have their respective supplies in historically high-risk profit levels compared to their averages that hover in the 55%-75% range dating back to 2018.”

This indicates that holders of these cryptocurrencies are booking profits on recent rallies, while uncertainties pervade the market. While Santiment suggests that XRP’s price may still have room for recovery due to more exposure from ETFs and positive news, it also highlights that a breach below 75% of supplies in profit would signify continued long-term growth. So, XRP enthusiasts may want to keep an eye on this crucial indicator. 🧐✍️

BlackRock Crushes Hopes of an XRP ETF 🚫📉

The recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States on January 10th sparked hope for other ETFs to enter the market, including those for Ether and XRP. However, it seems that XRP enthusiasts might need to lower their expectations.

BlackRock, the world’s largest asset manager, has announced that it has no plans to launch a spot XRP ETF. This revelation came from Fox Business journalist Charles Gasparino, who shared the news via a tweet, stating, “@BlackRock has no plans for a spot $XRP ETF.”

Hopes for an XRP ETF were initially ignited by a cryptic response from BlackRock CEO Larry Fink during a Fox Business interview. When asked about an XRP ETF, Fink’s mysterious reply of “I can’t talk about that!” led to speculation and excitement among investors and analysts. Unfortunately, these latest developments have cast a dark cloud on the possibility of an XRP ETF, further contributing to the bearish sentiment surrounding the coin. 😢

🤔 Reader’s Questions:

Q: Could XRP’s price still recover despite the bearish outlook?

A: While the bearish pattern and profit-booking by sellers suggest a challenging road ahead for XRP, there are still potential factors that could contribute to a recovery. Increased exposure from ETFs and positive news might buoy XRP’s price. However, it’s important to keep an eye on the breach below 75% of supplies in profit as an indicator of long-term growth.

Q: Is there any hope for an XRP ETF in the future?

A: As of now, hopes for an XRP ETF seem to be dashed. BlackRock, the world’s largest asset manager, has explicitly stated that it has no intentions of launching a spot XRP ETF. This announcement has further dampened optimism for the possibility of such an ETF in the near future.

Q: What other cryptocurrencies are experiencing historically high-risk profit levels?

A: According to Santiment, Bitcoin (BTC) and Ether (ETH) are also experiencing historically high levels of profit. Holders of these cryptocurrencies are currently cashing in on their profits as well.

💡 Expert Analysis and Investment Strategies:

Based on the current bearish pattern and profit-booking behavior, it’s crucial for XRP investors to exercise caution. While a price recovery may still be possible, it’s wise to closely monitor the breach below 75% of supplies in profit as an indicator of sustained long-term growth.

Additionally, keeping an eye on market trends, exposure from ETFs, and positive news should provide insights into potential price movements. As always, thorough research and understanding the market dynamics are essential before making any investment decisions.

📚 References:

1. XRP Price Prediction: XRP Drops to $0.60 Support, Time to Buy the Dip?
2. Price analysis 1/15: SPX, DXY, BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE
3. Polygon (MATIC) Investors Worried as Altcoin Moving To… Experts Answer
4. Celsius To Unstake Thousands Of Ether, Possibly Easing ETH Selling Pressure
5. BTC Price at $43K? Smart Money Bets Big on Bitcoin ahead of Potential BTC ETF Approval
6. Ether Jumps to $24k as traders bet on possible ether ETF next
7. Bitcoin Accepted Here: Coin Bureau’s YouTuber Guy Turner on the Power of Crypto
8. Spot Bitcoin ETFs: What to Expect on Day One of Trading

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