1. Summary:
XRP’s price surged by over 20% in a day to $2.36, attributed to Ripple’s donation to Donald Trump’s inaugural committee and favorable regulatory prospects under a potentially friendlier SEC leadership. However, technical analysis indicates a bearish reversal pattern, suggesting a possible correction of over 20%.
2. Key insights:
– XRP’s price spike was linked to Ripple’s contribution to Trump’s inauguration and expectations of a more crypto-friendly SEC under his administration.
– Technical indicators like RSI and EMA support levels contributed to the price rise, but a descending triangle pattern on the daily chart signals a potential bearish reversal.
– The bearish setup could lead to a correction towards $1.77, down 22.50%, unless the price breaks above the descending triangle, potentially reaching $2.90.
– The article emphasizes that readers should conduct their own research and be aware of the risks involved in investment decisions.
