BlackRock ETF rumors have caused huge volatility in the XRP market, with predictions that this could lead to a 20 percent correction in the next few weeks.
As of November 17, the price of XRP was hovering around $0.60, a weekly decline of approximately 9.5 percent, including a 7.5 percent decline in the last 24 hours.
The downtrend mirrored the price behavior of top-ranked cryptocurrencies. However, XRP has underperformed the crypto market, which is down only 2.5 percent this week.
On the other hand, on and before November 17, multiple events took place that significantly affected the market dynamics of XRP.
BlackRock’s XRP ETF rumor
On November 13, the price of XRP rose 12 percent to approximately $0.75, driven by rumors about a BlackRock exchange-traded product (ETF) centered around XRP.
However, Bloomberg ETF analyst Eric Balchunas later denied the rumor, which led to XRP quickly returning to its initial value that day. The volatility in XRP price resulted in large liquidations that mostly affected long position holders.
For example, between November 13 and November 14, the derivatives market witnessed $17.5 million worth of long liquidations. In comparison, only $2.87 million worth of short positions were liquidated, according to Coinglass.
What happened after the BlackRock XRP ETF rumor was an important factor in the downward trend in the price of XRP for the rest of the week.
XRP price prediction
The ongoing XRP price decline so far appears to be a typical bull market correction, after which there is a good chance that the overall uptrend will continue.
XRP/USD has been floating within a giant ascending resistance since June 2022. As of November 2023, the cryptocurrency entered a correction period after testing the upper trend line of the chart as resistance.
From a technical perspective, it risks a decline towards the lower trend line near $0.50, down 18.5 percent from current price levels.
However, the $0.50 downside target coincides with XRP’s 50-week and 200-week exponential moving averages (EMAs). Additionally, this level served as support between March 2021 and January 2022.
Conversely, a decisive break above the current resistance level near $0.75 would send the XRP price on track to $1.13 in 2023 or early 2024, marking an upside of over 80 percent from current price levels.
