XRP on the Verge of a Major Price Drop – Here's What to Expect

Despite the overall decline in the market of cryptocurrencies , which is mainly due to the decreasing enthusiasm around the spot Bitcoin exchange-traded fund (ETF), XRP is among the cryptocurrencies facing the most significant impact.

The token recently suffered significant losses, dipping below the critical support level of $0.60.

In response to this negative trend, analysts are already predicting significant declines in the valuation of XRP in the next few days. In particular, crypto analyst Alan Santana highlighted in a January 12 TradingView post that based on recent price movements and technical indicators, investors should prepare for a major correction in XRP.

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

The upper trendline of the triangle also experienced a touch, suggesting a potential reversal. The next day, January 12, saw a full-on red session, prompting Santana to predict a correction based on the day's market action, while remaining optimistic about the future outlook.

Predicting a strong correction, the expert stated:

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

Returning to Santana's January 5 analysis, he pointed to worrisome signs of an impending crash, noting that XRP is consistently trading 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 can lead to a serious decline. First slowly, as is happening now, then a sudden crash that wipes out all those who are long", he added.