XRP price perilously approaches crucial support level amidst Bitcoin and cryptocurrency market correction

XRP, the cryptocurrency, has experienced a 10% decline in price in January as investors take profits and a bearish sentiment engulfs the overall cryptocurrency market. This decline suggests that XRP may continue to face losses in the short term, primarily due to a classic bearish pattern. The price of XRP is currently trading below a bearish triangle, which is a chart pattern formed when the price consolidates inside a triangle defined by lower highs and relatively equal lows. This pattern is resolved when the price breaks below its support line, accompanied by an increase in trading volumes. For XRP, this pattern was resolved on January 3 when the price dropped to $0.5048, its lowest level since October 19, 2023. Attempts to lift the price of XRP were hindered by congestion from the 100-day exponential moving average (EMA) and the token lost support from the 200-day EMA on January 17. The moving average convergence divergence (MACD) indicator suggests that market conditions still favor the downside. If the sell-off continues, XRP could reach a bearish target of $0.4971, a 19% decrease from its current levels. The bearish outlook for XRP is partly attributed to profit-booking by sellers, as data from market intelligence firm Santiment shows historically high-risk profit levels for Bitcoin, Ether, and XRP. While there is a possibility of XRP’s price recovering due to increased exposure from ETFs and positive news, a breach below 75% of their supplies in profit would be a good signal for long-term growth. However, there are no plans for an XRP ETF from BlackRock, the world’s largest asset manager, dampening hopes and contributing to the bearish sentiment surrounding XRP. It is important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.