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XRP Price Experiences Q4 Decline with a 20% Drop

XRP Price Experiences Q4 Decline with a 20% Drop

XRP has entered a strong correction cycle after testing a multiyear resistance trendline, leading to a drop of 18.5% from its local high of $0.67 on Nov. 23. The cryptocurrency is expected to experience further selloffs in the coming weeks.

Technical analysis suggests that XRP has failed to break above a descending trendline resistance since January 2018, indicating psychological selling pressure around the line. Each bearish rejection after testing the trendline has historically resulted in a decline toward the ascending support trendline, with a downside target of around $0.50.

Supply distribution data shows that XRP holdings in addresses with a balance between 1 billion and infinity tokens have increased by 1.75% since Nov. 20, potentially indicating investors moving their XRP to exchanges for selling. Historical data also suggests that spikes in this token cohort precede price declines.

XRP-related investment vehicles have witnessed outflows worth $2.6 million in November, indicating derisking behavior among institutional investors. In contrast, other cryptocurrencies experienced inflows during the same period.

Despite the current decline, analysts anticipate XRP to resume its bull trend, with price targets ranging from $0.80 to $4.20 in 2024. The ongoing correction is seen as a normal part of a bull market, with some investors selling near price tops to secure profits.

Summary:

– XRP has entered a correction cycle after testing a multiyear resistance trendline.

– Technical analysis suggests a downside target of around $0.50.

– Supply distribution data indicates investors moving XRP to exchanges for selling.

– XRP-related investment vehicles have witnessed outflows, while other cryptocurrencies experienced inflows.

– Analysts anticipate XRP to resume its bull trend, with price targets ranging from $0.80 to $4.20 in 2024.

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