XRP Price Endures Q4 Decline with a Significant 20% Decrease

XRP Price Faces Extended Correction

The price of XRP has dropped by 18.5% from its recent high of $0.67, and it seems that more selling pressure is on the way in the coming weeks.

XRP Technicals Indicate a Decline

XRP has been unable to break above a descending trendline resistance since January 2018. In November 2023, it failed to log a breakout above this line, indicating significant selling pressure.

Historically, every bearish rejection after testing the descending trendline resistance has resulted in a decline towards the ascending support trendline.

The downside target for XRP is around $0.50, which is closer to its 50-week and 200-week exponential moving averages (EMA). This suggests that XRP’s price could decrease by 20% before 2024 if this pattern continues.

Potential XRP Transfers to Exchanges

Further evidence of XRP’s bearish outlook can be seen in the supply distribution data of its richest holders.

Addresses holding between 1 billion and infinite XRP tokens have seen a 1.75% increase in supply since November 20. Many of these addresses are likely owned by crypto exchanges, indicating that investors are moving their XRP holdings to trading platforms for selling.

Historical data shows that spikes in the supply of addresses holding between 1 billion and infinite XRP tokens often precede significant price declines. Conversely, a recent decline in this supply preceded a price rally for XRP.

Institutional investors have also been de-risking their XRP investments. In November, XRP-related investment vehicles saw outflows worth $2.6 million, while other cryptocurrencies experienced inflows during the same period.

Is the XRP Bull Run Over?

XRP has experienced significant gains in 2023, with a return of 80% as of November 23. Its legal victory against the U.S. Securities and Exchange Commission and the excitement surrounding the Spot Bitcoin ETF have contributed to these gains.

The current decline in XRP’s price appears to be a correction within a bull market. Some investors are selling XRP near its local price tops to secure profits, but the overall uptrend for XRP remains intact.

Trade analysts anticipate that XRP will resume its bull trend, with some predicting a rise to $0.80, representing a 30% increase from its current price levels.