XRP, the cryptocurrency, has experienced a 10% drop in price in January as investors take profits and a bearish sentiment prevails in the market. This downward trend is expected to continue in the short term due to the presence of a classic bearish pattern. XRP is currently trading below a bearish triangle, which formed when the price consolidated inside a triangle with lower highs and relatively equal lows. This pattern typically resolves when the price breaks below its support line, accompanied by increased trading volumes. The breakout target for XRP is around $0.4971, which represents a 19% decrease from its current levels.
The negative outlook for XRP can be attributed to profit-booking by sellers. Market intelligence firm Santiment has reported historically high-risk profit levels for Bitcoin, Ether, and XRP. This suggests that holders are taking profits on recent rallies due to uncertainties in the market. However, Santiment also notes that XRP’s price could recover in the future, especially with more exposure from ETFs and positive news. A breach below 75% of XRP’s supplies in profit would be a positive signal for long-term growth.
Despite hopes for the approval of spot ETFs for cryptocurrencies, including XRP, BlackRock, the world’s largest asset manager, has stated that it has no plans to launch a spot XRP ETF. This news has contributed to the bearish sentiment surrounding XRP.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.