XRP Falls 10% Amid Market Uncertainty and Negative Sentiment with No XRP ETF Planned by BlackRock
Summary:
XRP's price has declined by 10% in January amidst broader market pessimism and profit-taking actions by investors. Market data indicates XRP may experience further short-term loss due to a noted bearish pattern. This bearish outlook could stem from profit-booking by sellers seeing historically high-risk profit levels with Bitcoin, Ether, and XRP. BlackRock, the world largest asset manager, has quashed hopes for an XRP ETF by confirming it has no plans to launch one, leading to an increased bearish sentiment in the XRP market.
January has seen a 10% fall in the value of XRP (XRP), with wider market pessimism and profit-taking by investors plagued the cryptocurrency scene. It now seems that the XRP rate is set for further short-term decline, mostly due to a commonly noted bearish pattern. The XRP rate is currently below a bearish triangle.
At the beginning of January, XRP slipped under the support line of a dropping triangle, standing at $0.5934, potentially leading to a 17% correction rate. Since then, XRP has been holding steady under the technical chart pattern, forming a bearish pattern as the price hovers inside a triangle marked by sequential lower highs and approximately consistent lows.
The settling of a descending triangle occurs post the price slipping under its support line along with rising trading volume. The breakout target of the pattern is reached by adding the height of the triangle (the peak part of the triangle) to the downside breakout point.
XRP's chart pattern settled on 3rd January when the price fell to its lowest since 19th of October 2023, standing at $0.5048.
Efforts to improve XRP were disrupted by supplier bottlenecks from the 100-day Exponential Moving Average (EMA), currently fixed at $0.5934. On 17th January, the token lost another crucial support level provided by the 200-day EMA at $0.5717.
The Moving Average Convergence Divergence (MACD) indication has moved into the negative area below the neutral line, suggesting market conditions favor the downside. In the event of continued sell-off, XRP might possibly hit a bearish target of $0.4971, a roughly 19% drop from present levels.
Data from market intelligence company Santiment reveals that XRP's bearish outlook can be linked to sellers booking profits. They show Bitcoin (BTC), Ether (ETH), and XRP reflecting high-risk profit levels, historically speaking. This indicates holders are making profits from recent surges as uncertainties kick in.
Santiment suggests that due to more exposure from ETF's and encouraging news, XRP's price could recover, although a drop below 75% of their supplies in profit would be a good sign to anticipate long-term growth once again.
Regarding an XRP ETF, BlackRock, the global leader in asset management, has confirmed it has no plans to launch one, which was reported by journalist Charles Gasparino from Fox Business.
Anticipation about an XRP ETF had earlier been ignited by a remark from BlackRock's CEO Larry Fink in an interview with Fox Business. His evasive response of "I can't talk about that!" when asked concerning an XRP ETF had raised investor and analyst hopes. The newest revelations, however, have quelled these hopes, amplifying the bearish sentiment within the XRP market.
This report offers no investment advice or recommendations. Investments and trading moves come with risks, so readers need to undertake their own research when making decisions.
Published At
1/19/2024 12:01:55 AM
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