XRP price faces Q4 rout and 20% drop

XRP ( $1.30 ) ( XRP ( $1.30 ) ) price has dropped 18.5% from its local high of $0.67 on Nov. 23. And, it appears the cryptocurrency will suffer more selloffs in the coming weeks.

XRP ( $1.30 ) technicals hint at extended correction

XRP ( $1.30 ) has failed to break above a descending trendline resistance since January 2018. And, it fell short of logging a breakout above in November 2023, as well, illustrating a psychological selling pressure around the line.

Each bearish rejection after testing the descending trendline resistance has historically resulted in a decline toward the ascending support trendline. 

The downside target appears around $0.50, interestingly closer to XRP ( $1.30 ) ’s 50-week (the red wave) and 200-week (the blue wave) exponential moving averages (EMA). Thus, XRP ( $1.30 ) ’s price risks declining by 20% before 2024, if this fractal plays out.

Potential XRP ( $1.30 ) transfers to exchanges

XRP ( $1.30 ) ’s bearish outlook picks more cues from the supply distribution data tracked its richest cohorts.

Notably, the XRP ( $1.30 ) supply held by addresses with a balance between 1 billion and infinity tokens (the black wave) has risen 1.75% since Nov. 20.

A huge chunk of these addresses may belong to crypto exchanges, indicating that investors have been moving their XRP ( $1.30 ) holdings to trading platforms for selling.

Historical data shows that the spikes in the 1 billion-infinity XRP ( $1.30 ) token cohort precede both modest and huge price declines (the red wave). Conversely, a recent decline in the cohort’s supply, indicating exchange outflows, preceded XRP ( $1.30 ) ’s price rally from $0.55 to up to $0.68.

In addition, XRP ( $1.30 ) fund data show de-risking behavior among institutional investors. In November, XRP ( $1.30 ) -related investment vehicles witnessed outflows worth $2.6 million, according to CoinShares.

Interestingly, other cryptocurrencies experienced inflows in the same period, with Bitcoin ( $76,205.00 ) leading the chart.

Is the XRP ( $1.30 ) bull run over?

XRP ( $1.30 ) price has soared in 2023, generating 80% returns for its investors as of Nov. 23. Its partial legal win against the U.S. Securities and Exchange Commission and the Spot Bitcoin ( $76,205.00 ) ETF euphoria have contributed the most to its yearly gains.

Related: Why is XRP ( $1.30 ) price up today?

As a result, the ongoing XRP ( $1.30 ) price decline appears like a bull market correction. In other words, some investors are selling XRP ( $1.30 ) near its local price tops to secure profits. In other words, XRP ( $1.30 ) ’s overall uptrend is still intact.

Trade analysts anticipate XRP ( $1.30 ) to resume its bull trend, with Muro saying that it would rise to $0.80 next, up 30% from current price levels.

$1.30 ) &src=ctag&ref_src=twsrc%5Etfw">$ XRP ( $1.30 )

Just like ETH and SOL, broke out, ready to go, with or without retest of the consolidation low pic.twitter.com/92pIeOZZP7

— Muro (@MuroCrypto) November 23, 2023

CryptoBull expects XRP ( $1.30 ) to reach $4.20 in 2024, citing the cryptocurrency’s past breakouts after months of consolidation inside triangle patterns.