XRP price slump of 20% just the beginning of a major market correction?

On December 10th, in an XRP course analysis , we already raised the question of whether Ripple’s native cryptocurrency might be facing a trend reversal. This possibility was primarily justified by the bearish breakout from a larger symmetrical triangle . Since then, the XRP price has plummeted another 15.6% and is currently trading at 47.6 dollar cents.

Now the third largest cryptocurrency by market capitalization has lost further support in the form of the 200 MA line ( red ) on the 4H chart, which speaks for further downside potential, at least in the short term.

It is also very easy to see that the 50 MA line turned into a resistance a good 10 days ago and is increasingly pushing the price of XRP down.

Next levels of support for the XRP course

In the following figure, we have projected two support lines for the Bitcoin Supersplit price on a weekly basis on the daily chart in order to represent the next available support levels that lie between the current price and the minimum price target of just under $ 0.30, which results from the chart formation. Of course, this minimum price target must not be taken at face value. From a statistical point of view, a trend reversal is achieved in only 57-62 percent of the cases. However, this means that the probability is slightly higher that it will be achieved than that it will not be achieved.

I have drawn the next two support lines on the weekly chart as horizontal, green lines in the illustration above

These are 46.9 and 44.3 US cents. The former has obviously slowed the current price collapse for the time being. The next support thereafter is the 50 MA line based on the daily chart ( blue ).

So we see that the XRP course can still rely on some levels of support. The big question at this point is whether the sale of the XRP tokens is primarily due to the Spark token Airdrop and this is a normal correction or Ripple’s native cryptocurrency is the canary for the entire market.