Will XRP Price Crash Again?
XRP, the popular cryptocurrency, has seen a drop of over 17% from its recent multi-year high of $1.63, currently trading at around $1.41. Despite this recent dip, XRP has still managed to maintain impressive profits, with a month-to-date increase of nearly 180%, marking its best month since April 2021.
However, there are concerns about XRP being overbought, with its relative strength index (RSI) consistently above 70 on the daily chart in November. This signals a potential exhaustion of its upward trend and historically, when XRP’s RSI has been this high, significant corrections have followed.
For example, in June 2023, XRP’s price dropped by 46.5% after its daily RSI surpassed 85 during a rally. Similarly, in November 2023, XRP fell by 33.6% after an RSI spike above 70. The current price levels also align with Fibonacci retracement extensions, indicating a potential drop towards $1 in December.
While XRP’s correction may be concerning, there are positive indicators for its long-term trajectory. XRP recently broke out of a giant symmetrical triangle pattern, hinting at a possible bullish momentum. Additionally, fundamental factors like a potential end to the SEC versus Ripple battle and partnerships with digital asset exchanges could further boost XRP adoption.
It’s important to note that every investment and trading move involves risk, and readers should conduct their own research before making any decisions. As always, it’s essential to stay informed and keep a close eye on the market trends.
