XRP has recently experienced significant price volatility, with a surge in value followed by a notable downturn. Analysts suggest that this price correction is following an ABC pattern, which consists of two downtrend waves (A and C) with a minor uptrend wave (B) in between.
The first downtrend wave (A) occurred after XRP was rejected at the $2.90 resistance level, resulting in a decline to approximately $2.16. Wave B saw a brief recovery, with XRP climbing to a lower high of $2.65. Currently, the market is witnessing the onset of wave C, which is expected to continue its downward trajectory.
As of the latest trading session, XRP is priced at $2.19, reflecting a nearly 10% decrease in the past 24 hours. The ongoing wave C is anticipated to mirror the previous downtrend of wave A, potentially leading to another 25% correction from the $2.65 mark. Technical indicators, particularly the Relative Strength Index (RSI), support this bearish outlook. The RSI has recently dipped below its overbought zone for the first time since November 10, signaling a cooling of the bullish momentum.
Despite the current pullback, market sentiment remains cautiously optimistic, with analysts believing that a bounce from the $2 level is plausible, potentially driving XRP's price toward the $2.80 mark and beyond. Investors are closely monitoring the price movements of XRP, especially in light of the changing political landscape in the United States. The anticipation surrounding regulatory developments is contributing to a sense of optimism among traders, who are hopeful that clearer guidelines will emerge under the new administration.
The interplay between technical analysis and market sentiment will be pivotal in determining XRP's next moves. The potential for a bullish impulse following the completion of the ABC correction could attract renewed investment, particularly if the price stabilizes around the $2 mark.