The Crypto Market Value Plummets Amid SEC Report
The crypto market value dropped by 6.8% to $1.7 trillion after a report by Matrixport suggested that the SEC might not approve spot Bitcoin ETFs. This decline in market value led to a fall in the price of Ripple (XRP) to $0.56, down 11% in 24 hours.
Ripple (XRP) Price Prediction: Potential Triangle Breakout
Trader Captain Faibik drew parallels between the current market structure and XRP’s historic breakout, suggesting a potentially explosive move for the token. However, the volatility in the market resulted in XRP’s price falling to $0.5 before bouncing back to $0.56.
In 2017, when the triangle breakout occurred, XRP surged by over 30,000%. Now, once again it’s on the verge of Triangle Breakout. Will history repeat itself?
— Captain Faibik (@CryptoFaibik) December 30, 2023
Support Areas and Bearish Narrative
There are several support areas that could help bulls counter the bearish situation for XRP. These include the buyer congestion at $0.55 – $0.56 and the next level at $0.5. The MACD indicator also reinforces the bearish narrative, suggesting potential losses if XRP fails to bounce back from the support zone.
Potential Uptrend and Impact of Spot ETF Approval
If demand for new long positions in XRP builds up, it could lead to an uptrend and a return to prices above $1. The approval or rejection of spot ETFs by the SEC this month will also influence the market. While an approval could be positive, a rejection may result in a bigger selloff.
Matrix on Target projects a January rejection for Bitcoin Spot ETFs by the SEC, cautioning traders to hedge long exposure. With SEC Chair Gensler’s skepticism towards crypto, a potential -20% Bitcoin price drop is anticipated upon ETF denial.
— Matrixport (@realMatrixport) January 3, 2024
Buying the Dip and Resistance Levels
XRP holders may consider buying the dip if the price rebounds from the support levels at $0.55 – $0.56. This could pave the way for recovery above $0.6, although there is uncertainty due to resistance at $0.7 and $0.9.
Hot Take: XRP’s Price Volatility and Future Outlook
The recent volatility in XRP’s price highlights the potential for both upside and downside moves in the market. Traders should closely monitor developments related to spot ETF approvals and rejections as they will significantly impact XRP’s performance in the coming weeks.
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