XRP Faces a Drop Amid Market Correction
XRP, one of the key altcoins, is experiencing a decline as part of a broader market correction. Over the past 24 hours, it has lost more than 1% of its value. Market analyst MichaelXBT predicted this drop and suggested that XRP could bounce back after hitting a support level, potentially aiming for its 2021 highs.
Current Downtrend in XRP
According to MichaelXBT's analysis, XRP remains within an ascending channel that has been evident on the 4-hour chart since mid-November. This channel, characterized by higher highs and higher lows, indicates that bulls are still in control of the market.
On November 23, XRP reached $1.63, which acted as strong resistance. This level coincided with a market-wide retracement. Following this resistance, XRP's price dropped to $1.41.
MichaelXBT predicted that the price could fall further toward the lower trendline of the channel. This scenario materialized, with XRP hitting a low of $1.2795, aligning with the lower boundary of the channel. Bulls gained the necessary support at this level to initiate a new upward movement.
A Return to 2021 Levels?
After successfully retesting support, XRP embarked on a recovery trajectory. The altcoin’s price has risen by over 14% from its $1.2795 low. According to MichaelXBT, XRP is now positioned to break past the previous resistance at $1.63 and potentially reach the upper boundary of the channel near $1.7.
If XRP surpasses this level, bulls could gain the strength needed to push the price toward $1.96, a key resistance level during the 2021 bull market. Veteran analyst Peter Brandt even suggested that if XRP breaks above this threshold, its price could see a dramatic surge.
Key Levels and Caution
On the daily chart, the next major Fibonacci resistance is at $2.34, which would mark a new high beyond the 2021 peak. However, caution is advised, as XRP is currently trading at $1.47 with a Relative Strength Index (RSI) of 86, indicating overbought conditions.
While the market shows strong momentum, investors should proceed carefully, as the current levels may require a correction before further upward movement.
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