The past couple of months have seen remarkable activity in the cryptocurrency market, particularly with XRP experiencing significant volatility. This period of intense trading is unprecedented, not seen in over six years. Following the U.S. presidential election on November 5, 2024, in which Donald Trump emerged victorious, XRP’s value skyrocketed by over 400%, reaching an impressive peak of $2.90 on the Binance exchange by December 3.
However, the surge was short-lived, as XRP’s price has faced a decline over the past week. This downward trend appears to be part of an ABC correction pattern, indicating potential further dips before a new upward trend begins.
XRP Price Exhibiting ABC Correction
The recent correction in XRP’s price, since it hit the $2.90 mark, is characterized by an ABC pattern that seems to be approaching its conclusion. This pattern includes two downturn waves, A and C, with a minor uptrend wave B in between.
Wave Analysis and Price Movement
According to the XRP/US Dollar pair analysis on a 4-hour candlestick chart, the first downturn wave A began after the XRP price faced resistance at approximately $2.90 on December 3, declining to about $2.16 by December 5. This represented a significant 25% drop in just two days. Following this, a minor uptrend wave B indicated persistent bullish activity, peaking at a lower high of $2.65 on December 9, a 22% increase over four days.
Since reaching this lower high, XRP has embarked on another correction path in the past 24 hours, suggesting that corrective wave C is now underway. If this trend mirrors wave A, we could see a further 25% correction from $2.65, potentially dropping the price just below $2 before a rebound. This scenario is plausible, considering that the $2 mark is a psychological barrier that bulls are likely to defend against.
Bullish Impulse Suggests Next Move To $2.8 And Beyond
Currently, XRP is trading at $2.19, reflecting a nearly 10% drop in the past 24 hours. The ongoing wave C, the final leg of the ABC correction, is anticipated to continue its downtrend until it encounters resistance around the $2 mark. Technical indicators, particularly the Relative Strength Index (RSI), support this expectation.
Technical Indicators and Market Dynamics
The RSI has recently dipped below its overbought zone for the first time since November 10, indicating a cooling of the bullish momentum that previously drove XRP to its recent highs. This shift allows the corrective wave C to unfold fully.
Despite the current pullback, market dynamics suggest a strong likelihood of a rebound from the $2 level. Such a recovery could signal the start of a new bullish wave, potentially propelling XRP’s price towards $2.80 and beyond. This outlook is consistent with the broader positive sentiment surrounding XRP, fueled by expectations of regulatory clarity as a new U.S. presidential administration assumes office in January 2025.
In conclusion, while the XRP has faced recent challenges, the potential for a rebound and subsequent growth remains strong. Investors are advised to monitor these technical patterns and market conditions closely.
