The XRP has faced harsh upside down and erased some of the benefits made in the fourth quarter of last year.
Ripple (XRP) has gone into a strong bear market, this year a decline of more than 30% from its highest level.
This decline also occurred when the Ripple Network faced many fast catalysts. Ripple USD (RLUSD) StableCoin continues to gain market share, increasing a daily amount of more than $ 100 million. Other players in the XRP laser network, such as quorum and sologenic, have also seen more traction.
There is a possibility that the Securities and Exchange Commission (SEC) will end its appeal against Ripple Labs this year. It has already abandoned allegations against companies like Uniswap, Coinbase and Gemini.
In addition, the number of XRP transactions continues to increase this year. Data by XRPSCAN Shows that the number of XRP transactions on 1 March increased to about 1 million, a tendency that may continue in the coming months.
Additionally, there are indications that SEC will approve a spot XRP ETF later this year, a step that will be influenced by investors. JP Morgan analysts estimate that the flow will be more than $ 8 billion in the first year.
Wyckoff Theory XRP explains the price accident
The XRP price has gone to a bear market. Why? data Show Crypto Fear and Greed Index have moved into the extreme fear region of 18. It is motivating more investors to stay on the edge.
It also explains why other cryptocurrency has crashed.
The WYCKOFF theory or method, which was discovered by Richard Wyckoff 90 years ago, recently explains the ripple cell-off. This theory explains how asset prices run over time and the steps they follow.
He identified four major stages: accumulation, markup, distribution and markdown. The XRP remained in an accumulation phase for more than three years as it remained in a narrow border.
After Donald Trump won the US presidential election, its upward rise, or the markup phase was triggered. He promised to loosen the rules and appoint a crypto-friendly chair in SEC. This is characterized by high demand than phase supply.
The XRP entered the distribution stage soon after killing its highest level. This phase features indifference and pull-and-push between bulls and bears. This is followed by a head and shoulder pattern with a neckline at $ 2.
Therefore, there is a risk that the coin will move to the markdown stage when it goes under the neckline. If this happens, there is a risk that the price of Ripple will fall at $ 1.1395 at 78.6% retracement level.
