XRP on the Verge of a Serious Price Drop – Here’s What to Expect

Despite the overall downturn in the cryptocurrency market, which is mainly due to waning enthusiasm around the spot Bitcoin exchange traded fund (ETF), XRP is among the cryptocurrencies that are facing the most significant impact.

The token recently suffered significant losses, dipping below the critical support level of $0.60.

In response to this negative trend, analysts are already predicting significant declines in the valuation of XRP in the coming days. Notably, crypto analyst Alan Santana highlighted in a January 12 TradingView post that based on recent price movements and technical indicators, investors should prepare for a substantial XRP correction.

Santana backed up this prediction with various technical analysis. For example, on January 11, he highlighted a key rejection point just below the 50 exponential moving average (MA), where XRP briefly exceeded the $0.6054 level but eventually closed below it.

The upper trendline of the triangle also underwent a touch, suggesting a potential reversal. The next day, January 12, saw a full red session, prompting Santana to forecast a correction based on the day’s market action, while maintaining his optimism about future prospects.
Predicting a strong correction, the expert said:

It will be a very strong correction based on today’s action. Since this is just the beginning, prepare for 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.

Returning to Santana’s January 5 analysis, he pointed to troubling signs of an imminent breakdown, noting that XRP has consistently traded below the EMA200 with a weak relative strength index (RSI) of 34.33, indicating bearish momentum. The descending triangle formed since mid-November, along with lower highs and declining volume, presented a worrying picture for the XRP market.

“This combination of signals could lead to a serious decline. First slowly, as is happening now, and then a sudden collapse that liquidates all those whoare long,” he added.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.