Analyst: Turks’ Favorite Altcoin May See a Steep Correction!

In recent days, one of the most sought-after altcoin projects amid Turkish investors may be nearing the end of the rally. FXStreet analyst Akash Girimath advises traders to be wary of a steep retracement.

Here are two reasons for the steep straightening

XRP (XRP) rallied over 40% from September 22 to 23 following the positive course of the lawsuit process. The price is now showing a different development, indicating a potential pullback in the shorter time frame. The wider time frame also includes the possibility of retreating after its last explosive move.

XRP is currently forming a descending triangle formation on the hourly chart as seen below. This development heralds a fix for XRP. Price action around this pattern defines a descending triangle when connected using trend lines.

This pattern measures the break between the first local top and the mid-bottom, making an assumption below $0.450. According to the pattern, XRP price will continue to suffer a 15% drop to $0.386. However, it should be noted that the price increased by 74 percent in less than eight days. As a result, it makes sense in many ways to expect a steep pullback of up to 15%. Such an exponential movement is often followed by profit booking by investors. This results in a pullback.

Fortunately for XRP price, the midpoint of the 74% rally to $0.449 is quickly below the breakout point. This level will slow down the bearish momentum by some measure. However, traders can still wait for Ripple to drop to $0.423 or below the next reinforcement to $0.404.

Altcoin market watches Ripple and SEC lawsuit

On the daily timeframe, we see XRP price dipping from the $0.331 range before starting the 74% rise, which is close to testing the $0.596 resistance area again. Profit taking and worsening market conditions drove the altcoin price down roughly 15%. If the $0.464 reinforcement structure is breached, the bears are strong enough for further declines. In this case, XRP price will bounce back to the $0.331-$0.464 region. The daily demand zone stretching from $0.381 to $0.433 is a valuable support to stop the decline.

However, the main developments that will stop the decline stem from the basic news feed. Koindeks.comAs we have also reported, Ripple has gained a valuable advantage in the case.

A lawsuit in favor of Ripple will be explosive for XRP, as we saw from the last rally. Analyst Girimath expects a massive rally from $0.561 to $0.596 in this scenario as well. If we overcome this resistance, another 100% price increase is at the door, according to the analyst. $0.914 is the last price the bulls yearn for, the first of the targets.

On the other hand, XRP bulls can rally in the $0.561 to $0.596 region. This time around, weakness and much selling pressure will emerge in the midst of buyers. In such a case, a daily candlestick near the $0.384 support level will invalidate the bullish thesis for Ripple. This move could see XRP price drop into the low range from $0.331. Here, buyers can finally try a recovery rally.

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