Will the $0.5 prediction come true?

• XRP is down 2% in the last 24 hours and liquidation volumes remain high.
• Although the indicators looked bearish, several market indicators still favored the token.

Ripple (XRP) Several price corrections have been witnessed recently, with both the daily and weekly charts colored red. If we take the latest data into account, the token price may plummet to key support levels before rising again.

To better understand the scenario, AMBCrypto took a closer look at the token state.

There are some concerns with XRP.

Over the past seven days, the price of XRP has fallen by more than 3%. Actually it looks like this: CoinMarketCapThe value of XRP has fallen by more than 2% in the last 24 hours alone.

At the time of writing, it was trading at $0.6066 with a market capitalization of over $32.67 billion.

While the token price plummeted, trading volume increased, justifying the decline. However, as cryptocurrency analyst Ali pointed out via X (formerly Twitter), token prices could plummet even further.

$XRP We are moving inside a rising parallel channel! After receiving a rejection from the channel midline, #XRP We could see a decline towards the lower limit around $0.55. pic.twitter.com/1lfCDOAXur

— Ali (@ali_charts) December 17, 2023

Ali pointed out that XRP is moving inside a parallel channel that is rising. Considering the pattern, the token may fall to $0.55 before rebounding from that level.

AMBCrypto then looked at the liquidation levels of XRP to understand at what point XRP is liquidated. token We have seen a sell-off. According to the analysis, liquidations of XRP increased significantly near $0.644 before the price began to decline.

Another light liquidation occurred at $0.624.

However, the good news is that the key support level for the token is at $0.59. XRP may not fall to $0.55 if that level is tested.

Source: Hiblock Capital

It is interesting to note that while the token price plummeted, negative sentiment towards the token increased, as evidenced by the drop in weighted sentiment.

Nonetheless, social dominance remained high throughout the week, clearly reflecting its popularity in the cryptocurrency space.

Source: Santiment

XRP likely to fall further

AMBCrypto’s look at data from Santiment shows that XRP’s MVRV ratio has plummeted over the past week. Network growth has also been transferred, meaning there are fewer new addresses being created to transfer tokens at press time.

At the same time, the Binance funding rate for XRP remained in the green while the price plummeted. This suggests that derivatives investors are actively purchasing these products. token Lower prices increase the likelihood of further downside.

Source: Santiment

read Ripple (XRP) Price Prediction 2023-24

Nonetheless, AMBCrypto’s analysis is as follows: XRPThe daily chart pointed out some positive indicators. In particular, Bollinger Bands indicate that the price of XRP has entered a less volatile area. The likelihood of a major price drop plummets.

The money flow index (MFI) also showed a slight upward trend, suggesting the possibility of a future trend reversal.

Source: TradingView