XRP rose 2.1 percent to $0.52 on April 11, extending daily gains from $0.50 as traders pinned their hopes on a broader crypto market rally on the possibility of lower inflation data on April 12.
Lots of Weak XRP increases risk of 25% correction
The upward move brings Ripple’s coin closer to a bullish flag-shaped range breakout with a target of $0.65.
XRP daily chart | Source: Tradingview
However, the lackluster volume coupled with a bullish move points to downside risks ahead. In other words, expect a short-term decline towards the lower trendline of the flag near $0.51, or a broader correction in April, which would completely invalidate the bullish continuation setup.
The extended sell-off scenario is most evident in the weekly chart below, where a key support-turned-resistance line limits XRP’s upside prospects.
XRP weekly price chart | Source: TradingView
If the fractal reappears, XRP will likely slip to multi-month rising trendline support around $0.4 in May, roughly 25% below current prices.
exaggerated from litigation SEC U.S – Ripple cooling
XRP prices are up nearly 55% in 2023, largely due to predictions that Ripple will win a lawsuit against the U.S. Securities and Exchange Commission (SEC). In particular, prices jumped 43% in March alone in anticipation of a ruling at the end of the month.
But the reality is not like this. Meanwhile, the keyword “SEC vs. Ripple” fell to 56 in the week ended April 8 from a high of 100 (out of 100) in March.
Source: Google Trends
Additionally, “XRP” social volume is below its March highs, according to Santiment data.
social volume belong Ripple | Source: Santiment
Ultimately, XRP is still following in Bitcoin’s footsteps on the daily time frame. However, according to reports, BTC is likely to correct to $25,000 in the short term due to the risk of U.S. rate hikes, putting XRP and other altcoins at risk of losses as well.
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Mingying
As reported by Cointelegraph
