YEREVAN (CoinChapter.com) – XRP price traded at $0.52 ahead of the New York session on Jan 22, after a 4% intraday slide, effectively dropping below a significant support trendline for the first time since Nov 2022. Could positive news from the Gemini exchange revive the token? Let’s take a look at XRP’s technicals, before discussing the bullish factors.
A 60% Drop For XRP After All?
As CoinChapter has reported before, XRP traded within a formation named the ‘symmetrical triangle’ since July 2023. A symmetrical triangle forms when the price of an asset creates lower highs and higher lows, converging into a triangle.
This pattern indicates a period of consolidation before the price breaks out. It’s directionally neutral until a breakout occurs. The target is typically estimated by measuring the widest part of the triangle and projecting that distance from the point of breakout.
Traders watch for high volume to confirm the breakout direction, either upward or downward, to potentially predict the continuation or reversal of the current trend. As mentioned, XRP broke below the triangle’s support, which has been relevant since November 2022.
Bearish Target For XRP
If XRP price closes the session below the support, a possible bearish price target for the coin could stand at $0.2, or 60% below the current value.
Notably, technicals are not conclusive without support from on-chain metrics, or fundamental news. According to on-chain tracker Messari, XRP whale ranks have been receding year-to-date. Wallets containing over $10 million and over $1 million in XRP decided to secure their gains and exited the market en masse.
Generally, whale behavior could be construed as a ‘canary in the coalmines’ for a larger demographic of retail investors. They can also influence the market by creating selling pressure if and when they decide to unload some of their holdings.
Gemini To Relist XRP After All?
Gemini, a well-known cryptocurrency exchange, has been hinting at a potential relisting of XRP through a series of cryptic tweets. These tweets have garnered significant attention and speculation within the cryptocurrency community. The nature of the tweets, which include wordplays and riddles related to XRP, suggests that Gemini might be considering adding XRP back to its trading platform.
One of the tweets posted by Gemini read, “Don’t forget about XRP,” along with other similar tweets that contained plays on words with the letters “X” and “R” from XRP. Another tweet presented a riddle, further fueling speculation about Gemini’s plans regarding XRP.
This development is noteworthy because Gemini had previously delisted XRP in 2020, following the legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs. However, a U.S. court ruling in July 2023, which determined that XRP sales on exchanges were not classified as securities transactions, has possibly influenced Gemini’s reconsideration.
The possibility of Gemini relisting XRP is significant as it could enhance the cryptocurrency’s liquidity and accessibility, potentially impacting its market presence positively.
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