XRP Records Steepest Weekly Drop Since August 2023 Amid Market Corrections
Summary:
The cryptocurrency XRP has experienced a significant price drop, marking its worst performing week since August 2023. Impacted by various market factors, including unfounded rumors about a BlackRock XRP ETF, XRP's value plunged to around $0.60, underperforming the cryptocurrency market's 2.5% drop this week. The decline, which mirrors patterns seen across several major crypto assets, seems to be part of a regular market correction. An increase is projected if XRP can break the current resistance level of $0.75, potentially reaching $1.13 by 2023 or early 2024. However, the road ahead reveals possible risks, emphasizing the need for independent research before making any investment decisions.
XRP (XRP), a notable cryptocurrency, has experienced a notable drop, making it the worst-performing week for the digital asset since August 2023. As of November 17, the cost per XRP sits at roughly $0.60, marking an almost 9.5% decrease within a week, inclusive of a 7.5% drop in the past day. This demonstrates a pattern seen amongst several major cryptocurrencies, although XRP's downturn has outpaced the general crypto market, which only experienced a 2.5% drop this week.
Extensive analysis highlights several factors that greatly influenced XRP's market trends up to and including Nov. 17.
On November 13, a substantial increase of 12% saw XRP trading at approximately $0.75. This surge was instigated by rumors of an XRP-focused exchange-traded product (ETF) by BlackRock. However, this speculation was swiftly debunked by Bloomberg's ETF analyst Eric Balchunas, causing XRP's value to plummet back to its starting point that day.
The quick rise and fall in XRP price triggered significant liquidations, predominantly affecting those holding long positions. Within the timeframe of Nov. 13 and Nov. 14, $17.5 million worth of long positions were liquidated in the derivative market. Comparatively, only $2.87 million worth of short positions were liquidated.
The consequences of the false BlackRock XRP ETF report played a vital role in the rest of XRP's downward week.
Similar behavior was seen on Nov. 17 with a decrease of over 7.5% within 24 hours. Long liquidations roughly totaled at $5 million compared to $300,000 in short liquidations.
XRP's downward trend on Nov. 17 also coincided with minor decreases in the holdings of the cryptocurrency's wealthiest addresses. For instance, the assets held by addresses possessing between 100,000 and 100 million XRP moderately declined post the BlackRock ETF rumor.
The decrease in value on November 17 was part of an adjustment that began following the testing of an historically significant resistance trendline near $0.75. This decrease is also part of an oversold correction, which originates from November 6 when XRP's daily relative strength index (RSI) reached a peak not witnessed since July 2023.
While the XRP bear market is evident, it could potentially be viewed as a typical correction after which the primary uptrend may likely continue.
From a technical perspective, a decrease in value towards its lower trend near $0.50, a drop of 18.5% from the current price, seems imminent. Interestingly, the $0.50 target aligns with XRP's 50-week and 200-week exponential moving averages (EMAs).
However, a clear break beyond the current resistance level around $0.75 will set XRP on the path towards $1.13 by 2023 or early 2024, an exciting increase of over 80% from its current position. The upper target aligns with XRP's 0.382 Fibonacci line.
Please note, this article should not be considered as financial advice. Any investment or trading action involves risk, and readers must conduct independent research before making any decisions.
Published At
11/17/2023 1:06:42 PM
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