Recently, the market has seen notable volatility, with Bitcoin and Ethereum witnessing substantial price fluctuations and challenging crucial resistance levels. In contrast, XRP has not shown this trend. Its price has remained within a bearish consolidation in recent weeks, hovering around $0.55-$0.6. This has resulted in a decline in XRP’s market dominance, fueling bearish predictions among analysts. However, this might be the last chance to buy XRP near the dip as there’s a hope of a robust price surge in the coming days due to several bullish historical and accumulation trends amid SEC’s decision on the spot Bitcoin ETF launch.
XRP’s 1.5-Year Accumulation Phase Seems To Boost Price
It’s evident that while Bitcoin and the altcoin market are showing signs of an upswing, XRP remains in a phase of crucial testing. XRP’s price chart reveals that it had undergone a significant period of Wyckoff accumulation, lasting approximately a year and a half. This accumulation phase is characterized by a consistent build-up of assets, which historically often leads to a substantial price increase.
XRP recently broke out of this range, showing bullish sentiment in the face of market liquidations and holding its position at the higher end of the accumulation range, suggesting potential for growth.
Additionally, there’s an observation of similar market behaviors from past bullish cycles. The XRP’s price movements and the performance of Bitcoin, as historical trends have shown a significant correlation between the two.
Historically, XRP’s significant runs have been aligned with the overall bullish sentiment in the crypto market. As Bitcoin approaches its peak or potentially hits new highs, conditions may align for a similar bullish run for XRP. As a result, if the SEC brings positive news on Jan 10 regarding spot Bitcoin ETF launch, BTC price might skyrocket, pushing XRP to new highs.
It is to be noted that, in the years 2017 and 2020, XRP’s price rallies followed upward movements in Bitcoin’s value. This pattern shows the potential XRP’s surge ahead of next week’s BTC price movement in response to ETF news.
Additionally, XRP’s price is influenced by external factors, notably Bitcoin’s link to the tech sector. Given the close alignment between Bitcoin’s performance and stock market trends, as reflected in indices like NASDAQ and Dow Jones, shifts in the stock market could indirectly impact XRP through their effect on Bitcoin in a positive way.
What’s Next For XRP Price?
This might be the last opportunity to buy XRP near the dip as the price is set to skyrocket this week with a positive SEC news on spot Bitcoin ETF. Currently, the bulls are defending the $0.54 support level as there’s an intense accumulation near the dip. However, bears continue to bring selling pressure near $0.6. As of writing, XRP price trades at $0.56, declining over 1.8% from yesterday’s rate.
Currently, the 20-day Exponential Moving Average (EMA) at $0.6 is showing a downward trend, and the Relative Strength Index (RSI) is in bearish territory as it trades at 34, suggesting that bears might have the upper hand. Any recovery from the current level will send the price above EMA20.
Should the XRP price decline further or face rejection at the $0.6 resistance, the probability of a drop toward $0.5 increases. This scenario could lead to a bearish sentiment, sending the price near $0.45. To counter this bearish outlook, the bulls need to drive the price above the descending resistance line.
If the SEC approves spot Bitcoin ETF, we might see XRP price breaking the current bearish consolidation and aim for an immediate high of $1. However, this level might trigger short-term holders to exit, creating a minor rejection. In the long run, XRP price might continue breaking further resistance channels.