Crypto Market Sees XRP Correction Following BlackRock ETF Rumor: Is the XRP Bull Run Over?
Crypto News – XRP is currently facing a challenging period, with its worst weekly performance since August 2023. As of November 17th, XRP is trading around $0.60, reflecting a week-to-date decline of nearly 9.5%, including a notable 7.5% drop in the last 24 hours. While this decline is in line with the broader cryptocurrency market, XRP’s underperformance stands out, as the overall crypto market only experienced a 2.5% decrease this week.
A closer examination of recent events sheds light on the factors significantly impacting XRP’s market dynamics leading up to and on November 17th.
BlackRock’s XRP ETF Rumor
On November 13th, XRP’s price surged by 12% to approximately $0.75 due to a rumor circulating about a potential BlackRock exchange-traded product (ETF) centered around XRP. However, this rumor was swiftly debunked by Bloomberg’s ETF analyst, Eric Balchunas, causing XRP’s price to quickly return to its initial value for the day. This sudden surge and subsequent drop in XRP price resulted in substantial liquidations, primarily affecting long position holders.
Between November 13th and 14th, the derivatives market saw long liquidations totaling $17.5 million, in stark contrast to short positions, which amounted to only $2.87 million in liquidations, according to Coinglass. The aftermath of the BlackRock XRP ETF rumor played a significant role in the cryptocurrency’s downward trajectory for the rest of the week.
XRP Whale Distribution
XRP’s price weakness on November 17th coincides with a slight decrease in holdings among its wealthiest addresses. For example, addresses holding a balance between 100,000 XRP and 100 million XRP have experienced a modest reduction since the BlackRock ETF rumor. In contrast, the balance cohort ranging from 100 million to 1 billion XRP has seen a marginal 0.11% increase. Addresses holding 1 billion or more XRP remained stable throughout the week.
The decline in XRP’s price on November 17th is part of a broader correction that commenced after testing a historical resistance trendline near $0.75. This correction is also associated with an overbought condition that emerged on November 6th when XRP’s daily relative strength index (RSI) reached its highest level since July 2023. Typically, an “overbought” RSI serves as a precursor to selloffs.
Is the XRP Bull Run Over?
The ongoing decline in XRP’s price appears to be a typical correction within a bull market, and there is a good chance that the overall uptrend may resume. XRP/USD has been oscillating within a significant ascending channel since June 2022. In November 2023, the cryptocurrency entered a correction phase after testing the upper trendline of this channel as resistance.
From a technical perspective, there is a risk of a decline towards the lower trendline, which is situated near $0.50, representing an 18.5% drop from the current price levels. Interestingly, this $0.50 target aligns with XRP’s 50-week (red wave) and 200-week (blue wave) exponential moving averages (EMAs). Furthermore, this level has previously served as support between March 2021 and January 2022.
Conversely, if XRP manages to decisively break above the current resistance level near $0.75, it could pave the way for a price movement towards $1.13 in 2023 or early 2024, representing an impressive 80% increase from the current price levels.