- Ripple price is contained inside a descending triangle pattern on the daily chart.
- The digital asset is on its way towards the triangle's x-axis at $0.44.
Ripple had a significant pullback after the SPARK airdrop ended on December 12, but managed to recover promptly. Now that the rest of the cryptocurrency market seems to be in consolidation mode, XRP bears are targeting $0.44.
Ripple price faces short-term correction
XRP price action has formed a descending triangle pattern on the daily chart. The third-largest cryptocurrency by market capitalization was recently rejected from the triangle's hypotenuse, indicating that is bound for a correction towards the underlying support at $0.44.
The 50-day SMA coincides with the triangle's x-axis, which further strengthens this support barrier.
If the bulls can indeed defend the $0.44 level, Ripple price will likely rebound towards the descending trendline at $0.55. A breakout above this hurdle can push XRP to a high of $0.70.
XRP/USD daily chart
It is important to note that even though large XRP holders sold off their tokens following the SPARK airdrop to take advantage of the upward price action, some of them appear to be reentering the market. Most importantly, the number of whales holding 10,000,000 XRP or more, worth roughly $5,200,000, continues making a series of higher highs.
Such a rising demand for this cryptocurrency among institutional investors adds credence to the bullish outlook.
XRP Holders Distribution chart
Regardless, investors must pay close attention to the $0.44 support level. A breakdown below this demand wall can quickly drive Ripple price towards $0.30.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.