XRP Faces the Brunt of the Market Downturn, Analysts Predict a Correction

Despite the overall downturn in the cryptocurrency market, which is mainly due to waning enthusiasm around the spot Bitcoin exchange traded fund (ETF), XRP is among the cryptocurrencies that are facing the most significant impact.

Cryptocurrency XRP is experiencing substantial losses, trading below the critical support level of $0.60 amid a broader downturn in the cryptocurrency market.

The downturn is largely attributed to waning enthusiasm around the spot Bitcoin exchange traded fund (ETF).

Reacting to the XRP price decline, analysts are predicting significant declines in the coming days.

In particular, crypto analyst Alan Santana highlighted in a January 12 TradingView post that investors should expect a substantial XRP correction based on recent price movements and technical indicators.

Santana supported this prediction with various technical analysis. For instance, on January 11, he highlighted a key rejection point just below the 50 exponential moving average (MA), where XRP briefly exceeded the $0.6054 level but eventually closed below it.

The upper trendline of the triangle also underwent a touch, suggesting a potential reversal. The next day, January 12, saw a full red session, prompting Santana to forecast a correction based on the day’s market action, while maintaining his optimism about future prospects.

“It will be a very strong correction based on today’s action. Since this is just the beginning, prepare for impact. We will have plenty of time to buy at lower prices and enjoy a full year of growth (2024). I will be here to share with you the best time to enter when support is found,” the expert said.

Santana's earlier analysis, published on January 5, pointed to troubling signs of an imminent breakdown. He noted that XRP has consistently traded below the EMA200 with a weak relative strength index (RSI) of 34.33, indicating bearish momentum.

The descending triangle formed since mid-November, along with lower highs and declining volume, presented a worrying picture for the XRP market.

“This combination of signals could lead to a serious decline. First slowly, as is happening now, and then a sudden collapse that liquidates all those who are long.”

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