XRP Price Experiences ABC Correction with Potential Bounce to $2.8
The XRP price has shown significant volatility over the past eight weeks, with trading activity not seen in over six years. Following the U.S. presidential election on November 5, 2024, where Donald Trump won, XRP's value surged over 400%, reaching a peak of $2.90 on Binance on December 3.
Recently, XRP has experienced a downturn, following an ABC correction pattern. Technical analysis indicates further declines before a potential rebound.
XRP Price Exhibiting ABC Correction
The correction since hitting $2.90 has formed an ABC pattern, consisting of two downtrend waves (A and C) and one minor uptrend wave (B). The first wave A began after rejection at resistance around $2.90 on December 3, bottoming out at $2.16 on December 5, marking a 25% decline. This was followed by wave B, which peaked at $2.65 on December 9, reflecting a 22% increase.
Currently, another correction (wave C) is underway. If it mirrors wave A, XRP could decline by another 25% from $2.65, potentially dropping just below $2, a key psychological level for bulls.
Bullish Impulse Suggests Next Move to $2.80 and Beyond
As of now, XRP is trading at $2.19, down nearly 10% in the last 24 hours. The ongoing wave C may continue downward until it hits resistance at $2. Indicators such as the Relative Strength Index (RSI) have dropped below overbought levels, indicating a cooling of bullish momentum that previously lifted XRP's price.
Despite the pullback, market dynamics suggest a rebound from the $2 level is likely. Such a bounce could initiate a new bullish wave, pushing XRP towards $2.80 and beyond. This aligns with optimistic investor sentiment regarding regulatory clarity under a new U.S. presidential administration starting January 2025.
