XRP has seen a sharp price correction, dropping 6.55% in the last 24 hours to $1.10 on Nov. 19. This pullback comes after retesting a three-year high of $1.26, driven by profit-taking and controversy surrounding Ripple Labs.
Profit-Taking After Overbought Rally
XRP’s price has cooled following a staggering 149% rally in November, primarily fueled by market optimism after Donald Trump’s reelection. The rally pushed XRP’s relative strength index (RSI) above 70, signaling "overbought" conditions.
An overbought RSI often triggers profit-taking, leading to a price correction or consolidation. XRP has formed a bull pennant on the four-hour chart, hinting at a potential rally to $1.57 by December if the price breaks above the pennant’s upper trendline. However, breaking below the lower trendline could see XRP drop to its 50-4H EMA at $0.52 — a nearly 50% downside.
Ripple-Trump Meeting Sparks Concerns
XRP’s decline coincides with rumors of a meeting between Ripple Labs CEO Brad Garlinghouse and President-elect Donald Trump. The news has sparked concerns in the crypto community, with critics warning of Ripple’s perceived alignment with centralization, including its potential association with central bank digital currencies (CBDCs).
Prominent crypto figures, including Ryan Selkis and Pierre Rochard, have accused Ripple of promoting anti-Bitcoin narratives. This perception has fueled skepticism among investors, potentially pressuring XRP’s market dominance, which has seen a decline during this correction.
Outlook for XRP
Despite the correction, XRP’s technical setup remains bullish if it holds above the pennant’s lower trendline. Traders are eyeing $1.57 as the next key target, representing a potential 40% upside. However, controversies and market sentiment could introduce further volatility.
As the market digests Ripple-related news, investors remain cautious, balancing technical optimism with the broader regulatory and narrative concerns surrounding XRP, according to Cointelegraph.
