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XRP price surge halts as SEC versus Ripple decision prolongs — potential 25% decline anticipated?
XRP (XRP) increased by 2.1% to $0.52 on April 11, building on its daily gains from $0.50 amid a broader rally in the cryptocurrency market, as traders expressed optimism regarding easing inflation data ahead of April 12.
XRP price: subdued volumes heighten risk of 25% correction
The upward movement of XRP brought it closer to potentially breaking out of its current bull pennant range, with a price target set at $0.65.
XRP/USD daily candle price chart. Source: Tradingview
Nonetheless, the subdued trading volumes accompanying XRP’s rise suggested a possible price correction in the future. This could result in a short-term retreat toward the pennant’s lower trendline around $0.51 in April or a more extensive correction that could invalidate the bullish continuation pattern.
The extended sell-off scenario is most clearly illustrated on the weekly chart below, where a significant resistance-turned-support line has constrained XRP’s upward potential.
XRP/USD weekly price chart. Source: TradingView
If the fractal pattern reoccurs, XRP’s price may risk declining toward its multi-month ascending trendline support near $0.40 by May, representing a decrease of approximately 25% from current price levels.
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SEC vs. Ripple excitement diminishes
The price of XRP has surged by nearly 55% in 2023, largely driven by expectations that Ripple will prevail in its lawsuit against the United States Securities and Exchange Commission (SEC). This includes a 43% increase in March amid speculation that the ruling would be announced by the end of the month.
Related: Ripple, Montenegro sign deal on project for unspecified national digital currency
However, that did not occur. Concurrently, the Google search interest for the term “SEC vs. Ripple” fell from its March peak of 100 — a perfect score — to 56 in the week ending April 8.
Internet trends for the keyword “SEC vs. Ripple” on a 12-month relative basis. Source: Google Trends
Additionally, “XRP” social volumes have decreased from their March highs, based on data monitored by Santiment.
XRP social volumes. Source: Santiment
Finally, XRP continues to move in tandem with Bitcoin (BTC) on a daily basis. However, as Cointelegraph reported, BTC faces the risk of a correction to $25,000 in the near term due to potential rate hikes, which could also put XRP and other altcoins at risk of losses.
This article does not contain investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any decisions.
