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XRP nears key breakout, but lackluster volumes may spoil its 30% rally setup.
XRP price: lackluster volumes raise risk of 25% correction
XRP’s upside move brought it closer to breaking out of its prevailing bull pennant range, with a price target of $0.65.
XRP/USD daily candle price chart. Source: Tradingview
However, lackluster volumes accompanying XRP’s gains hinted at a potential price correction in the future. That could mean a short-term pullback toward the pennant’s lower trendline near $0.51 in April or a broader correction altogether invalidating the bullish continuation setup.
The extended sell-off scenario is best visible on the weekly chart below, wherein a key resistance-turned-support line has limited XRP’s upside prospects.
XRP/USD weekly price chart. Source: TradingView
If the fractal plays out again, XRP’s price will risk falling toward its multimonth ascending trendline support near $0.40 by May, down about 25% from current price levels.
SEC vs. Ripple hype cools down
The XRP price has soared by nearly 55% in 2023, primarily due to anticipations that Ripple will win the lawsuit against it by the United States Securities and Exchange Commission (SEC). That includes its 43% rise in March amid speculations that the ruling will come out by the month’s end.
But it didn’t. Simultaneously, the Google search score for the keyword “SEC vs. Ripple” declined from its March peak of 100 — a perfect score — to 56 in the week ending April 8.
Internet trends for the keyword “SEC vs. Ripple” on a 12-month relative basis. Source: Google Trends
In addition, “XRP” social volumes dropped from their March highs, according to data tracked by Santiment.
XRP social volumes. Source: Santiment
Lastly, XRP remains in lockstep with Bitcoin (BTC) on a daily timeframe. However, as Cointelegraph reported, BTC risks a correction to $25,000 in the near term due to rate hike risks, putting XRP and other altcoins in danger of losses as well.
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