Ripple (XRP) is down 6.0% this week, trading at $2.4030, underperforming the broader market as Bitcoin (BTC) sees a modest decline of 1.0% to $99,000. XRP’s recent rally, which saw an impressive 375.0% surge following Donald Trump’s victory in the presidential election earlier this month, appears to be losing momentum. Much of this rally was driven by expectations of regulatory easing for Ripple, a sentiment that was confirmed with little market reaction to the nomination of Paul Atkins, a known advocate for crypto assets, as the new head of the Securities and Exchange Commission.
Current overbought conditions in XRP bear similarities to its performance in late 2017. Then, XRP experienced a sharp rise before entering a significant correction in early 2018. If this historical pattern repeats, a correction targeting $2.0000 or potentially lower could emerge in the coming weeks. However, Trump’s inauguration in January may provide fresh momentum for another rally, potentially offsetting the downside risks.
