XPR (XRP) rose 2.1% to $0.52 on April 11, extending its daily gains of $0.50 alongside a broader cryptocurrency market rally as traders pinned hopes on providing inflation data to April 12.
XRP Price: Lackluster Volumes Increase 25% Correction Risk
XRP's bullish move brought it closer to breaking out of its prevailing bull pennant range with a $0.65 price target.
However, the lackluster volumes accompanying XRP gains hinted at a potential price correction down the road. That could mean a short-term pullback towards the pennant's lower trend line near $0.51 in April or a broader correction that invalidates the bullish continuation setup entirely.
The extended sell-off scenario is best seen on the weekly chart below, where a key resistance-turned-support line has capped the bullish prospects for XRP.
If the fractal plays out again, XRP price will risk falling towards its multi-month uptrend line support near $0.40 in May, down 25% from current price levels.
The hype of SEC vs. Ripple goes cold
XRP price has skyrocketed almost 55% in 2023 mainly due to anticipations that Ripple will win the lawsuit filed against it by the US Securities and Exchange Commission (SEC). That includes its 43% rise in March amid speculation the ruling will be released at the end of the month.
Related: Ripple and Montenegro sign an agreement on an unspecified national digital currency project
But it was not like that. At the same time, 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.
Furthermore, social volumes for “XRP” fell from their March highs, according to data tracked by Santiment.
Lastly, XRP remains at the same level as Bitcoin (BTC) on a daily schedule. However, as Cointelegraph notedBTC is at risk of a correction to $25,000 any time soon due to rate hike risks, putting XRP and other altcoins in danger of losses as well.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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