BlackRock ETF rumors have caused massive volatility in the XRP market, with predictions that it could lead to a 20 percent correction over the next few weeks.
As of November 17, the price of
The downtrend mirrored the price action of the top-ranked cryptocurrency. However, XRP has underperformed the crypto market, down just 2.5 percent this week.
On the other hand, on November 17 and before, several events occurred that significantly affected the market dynamics of XRP.
BlackRock’s XRP ETF rumor
On November 13, the price of XRP rose 12 percent to around $0.75 due to rumors about a BlackRock exchange-traded product (ETF) focused on XRP.
However, Bloomberg ETF analyst Eric Balchunas later refuted the rumor, causing XRP to immediately return to its opening price that day. The volatility in the XRP price resulted in massive liquidations that mostly affected long position holders.
For example, between November 13 and November 14, the derivatives market saw $17.5 million worth of long liquidations. In comparison, only $2.87 million worth of short positions were liquidated, according to CoinGlass.
What happened after the BlackRock XRP ETF rumor was a significant factor in the decline in the price of XRP for the rest of the week.
xrp price prediction
The ongoing XRP price decline so far appears to be a typical bull market correction, after which there is a good chance that the overall bullishness will continue.
XRP/USD has been floating inside a huge ascending resistance since June 2022. As of November 2023, the cryptocurrency entered a correction period after testing the charts’ upper trend line as resistance.
From a technical perspective, it risks a decline towards the lower trend line near $0.50, which is 18.5 percent below the current price level.
However, the downside target of $0.50 coincides with XRP’s 50-week and 200-week exponential moving averages (EMA). Additionally, this level served as support between March 2021 and January 2022.
Conversely, a decisive break above the current resistance level near $0.75 would send the XRP price to $1.13 in 2023 or early 2024, representing an increase of more than 80 percent from current price levels.