Massive XRP Correction Confirmed Amid Descending Triangle Formation

XRP could be moving toward a more substantial price slump in a sustained price correction trend following the formation of a descending triangle on the daily chart.

Skilled chartist Alan Santana made this forecast in an elaborate price analysis for XRP on TradingView. The analyst began the XRP report on Jan. 1, New Year’s Day, and has continued to update it based on XRP’s dynamic price situation.

XRP Forms a Descending Triangle

Data from an accompanying chart shows that XRP has been trading in a descending triangle since it dropped from the $0.7329 high on Nov. 6, 2023. 

A descending triangle typically features lower highs and a horizontal support line. This pattern shows that, while the asset has continued to record lower highs, it holds firm above a defined support.

The support for XRP amid the formation of the descending triangle has been the $0.5892 level, currently stationed at Fibonacci 0.5.

Santana’s overarching prediction from Jan. 1 is that the crypto asset would breach below this support level in the early weeks of 2024 amid a sustained correction.

According to him, the confidence in an imminent drop in XRP’s price is further bolstered by a combination of several signals, including a drop below the 50-day exponential moving average (EMA), a weak relative strength index (RSI) for XRP and decreasing trade volume.

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From Jan. 3 to Jan 5, the analyst updated the charts to present new signals that continue to point to the crash. On Jan. 3, XRP broke below the pivotal support line at $0.5892 amid the market-wide collapse. The token dropped to $0.50400 but immediately recovered. 

This recovery only gained ample momentum on Jan. 11 amid the rally recorded by the broader market on the back of the spot BTC ETF approval. XRP surged to a high of $0.6240. Nonetheless, Santana remained confident of a looming downturn.

Imminent Substantial Correction 

In a Jan. 12 update, the chartist spotlighted the latest rally and XRP’s subsequent rejection above the $0.60 level, which coincided with the upper trendline of the descending triangle.

He predicted a massive collapse for Jan. 12. Interestingly, XRP dropped 5.32% that day, falling below the $0.5892 support.

According to the analyst’s projections, this downtrend will continue for several more weeks, potentially resulting in an XRP collapse to the lows below $0.40. However, his long-term outlook for XRP remains extremely bullish. 

He sees these early weeks of 2024 as a period of accumulation, suggesting that investors would have enough time to procure XRP tokens at low prices this year.

He noted that he would call attention to the appropriate entry upon the confirmation of support. The analyst sees this year as a period of growth for XRP.

XRP currently changes hands at $0.5787, up 0.47% today amid renewed interest. Interestingly, the crypto asset commands the eighth-largest volume over the past 24 hours, as its trade volume has skyrocketed 88.91% to $1,087,911,428, according to data from CoinMarketCap.