XRP has shown notable volatility following Donald Trump’s election victory, with its value surging 400% to $2.90 in early December. This marked intense trading activity unseen in over six years. However, the price has recently followed an ABC correction pattern, suggesting that further price decline may occur before another bullish phase.
The ABC correction of XRP consists of two downtrend waves, A and C, and a minor uptrend wave B. After peaking at $2.9, it declined to $2.16, marking a 25% drop. The subsequent wave B saw a 22% increase, with XRP reaching a lower high at $2.65. The ongoing wave C suggests a potential further decrease.
Technical indicators like the Relative Strength Index (RSI) support the notion of a continued downtrend, with the potential for XRP to drop to the psychological level of $2 before another bullish impulse. This view aligns with market dynamics and suggests XRP could reach $2.80 and potentially higher.
Investor optimism remains high for XRP, partly due to anticipated regulatory clarity after the new US presidential administration assumes office in January 2025, adding to the bullish outlook for XRP's longer-term prospects.
