Ripple (XRP) Slumps 10% in January: Is a Revival on the Horizon?

• Performance of Digital Assets Sluggish in Early 2024
• Unrealized Expectations Post SEC Approval of Bitcoin ETFs
• Ripple (XRP): A Possible End to the Bearish Outlook?
• Ripple's Downward Trend in January
• High-Risk Profit Levels: A Concern for Bitcoin, Ethereum and Ripple
• Analyst Predicts Ripple Surge

Performance of Digital Assets Sluggish in Early 2024

As the initial weeks of 2024 unfold, digital assets including Ripple (XRP$0.620 -1.68%) are yet to display positive trends. Ripple has seen a fall of 10% in January so far. A generally bearish sentiment prevails in the market; however, a potential reversal for the cryptocurrency might be on the horizon.

Unrealized Expectations Post SEC Approval of Bitcoin ETFs

At the onset of 2024, there was much optimism surrounding the performance of digital assets, especially as the US Securities and Exchange Commission (SEC) was due to approve the establishment of 11 Spot Bitcoin$42,260 -0.64% ETFs. However, the anticipated market reaction has not materialized more than a week after the approval. A ripple effect of this unexpected outcome is that numerous other digital assets have also failed to see a surge.

Ripple (XRP): A Possible End to the Bearish Outlook?

Regrettably, the digital asset market has gotten off to a rather weak start this year. The overall performance has been below the expectations that were high as 2023 was drawing to a close. The negative impact has been particularly notable on Ripple (XRP), which has been struggling during these early weeks of the year.

Ripple's Downward Trend in January

So far, Ripple (XRP) has witnessed a decline of over 10% throughout January, trading at a current price of $0.53 which is further down by 2% over the last 24 hours as reported by CoinMarketCap. This comes amidst a crucial support level for the asset at $0.55, a benchmark yet to be reached. This current price is the lowest since early January when it broke out of a descending triangle pattern and fell to a price of $0.5048, the least since October 2023.

High-Risk Profit Levels: A Concern for Bitcoin, Ethereum and Ripple

Santiment, the market intelligence platform, has identified high-risk profit levels for Bitcoin (BTC), Ethereum$2,315 -2.42% (ETH) and Ripple (XRP). Bitcoin is at 83%, Ethereum at 84% and Ripple at 81%. These percentages are significantly high compared to their average levels, which range from 55% to 75%, traced back to 2018.

Analyst Predicts Ripple Surge

Crypto analyst EGRAG, however, forecasts an imminent Ripple surge of 800%, expecting the asset to reverse its course and climb to the $5 level. A prolonged bull market spanning several months is anticipated according to EGRAG. This conjecture is informed by long-term market observation spanning almost a decade. Nevertheless, skepticism about this prediction is prevalent owing to Ripple's current performance. Unless it breaks its mid-term decline, a sharp reversal and subsequent surge seem rather unlikely.

Edited by Jonathan Stoker