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The crypto market value plummeted by 6.8% to $1.7 trillion on Wednesday following a report by Matrixport regarding the likelihood of the Securities and Exchange Commission (SEC) greenlighting spot Bitcoin exchange-traded funds (ETFs). As Bitcoin price fell sweeping through liquidity at $40,000, Ripple (XRP) dived to $0.56, down 11% in 24 hours.
Investors have over the last few months sustained a general bullish outlook of the market, with XRP price climbing to $0.7 in December. In the last few weeks, the cross-border money remittance token consolidated above an ascending trendline but due to resistance at $0.64, price movement was capped in the range to $0.6.
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Ripple (XRP) Price Prediction: What’s Coming After Triangle Breakout?
Seasoned trader Captain Faibik drew parallels between the current market structure and XRP’s historic breakout, suggesting a potentially explosive move for the international money transfer token.
He argued that the similarities in the triangle patterns were too striking to ignore. However, the volatility in the market resulted in an opposite reaction with XRP price nosediving 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? 🧐#Crypto #XRPArmy #XRP pic.twitter.com/xHGRQLrhM7
— Captain Faibik (@CryptoFaibik) December 30, 2023
Several support areas would help bulls arrest the bearish situation and possibly compel traders to buy the dip. These include the buyer congestion immediately at $0.55 – $0.56 and the next level at $0.5.
The Moving Average Convergence Divergence (MACD) indicator reinforces the bearish narrative. Failure to bounce back from the support zone at $0.55 to $0.56, losses could increase fast towards $0.55 resulting in more liquidations.
With the immediate support holding firmly, demand for new long positions in XRP could build up the uptrend and return the price on the trajectory eyeing highs above $1.
The rejection or approval of the spot ETF this January would also influence the performance of the crypto market over the next few weeks. While an approval could be ballistic for Bitcoin and the majority of altcoins, a rejection could lead to a bigger selloff.
According to the report by Matrixport, the SEC is not motivated to approve an ETF, especially not from a political standpoint. The agency may demand that applicants fulfill one key requirement before approving the ETF in Q2.
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, though a positive end-of-2024… pic.twitter.com/IgaMhBJtiP
— Matrixport (@realMatrixport) January 3, 2024
XRP holders may consider buying the dip if the price rebounds from the support between $0.55 and $0.56. Such a move could clear the path for recovery above $0.6 despite the uncertainty due to resistance looming at $0.7 and $0.9, respectively.
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