The Hong Kong Virtual Asset Consortium (HKVAC) has updated its crypto indexes, reflecting significant changes in the cryptocurrency landscape. Notably, Ripple’s XRP has been removed from HKVAC’s top five global crypto indexes and replaced by Solana (SOL), which surpassed XRP in market capitalization in December 2023.
These changes underscore the dynamic nature of the cryptocurrency market, highlighting the rise of new players like Solana overtaking Ripple. The HKVAC indexes act as a barometer for the market, indicating a shift towards diversifying and recognizing emerging blockchain technologies.
Meanwhile, the price of XRP has remained stable. From its January 3 crash of 20% in a single day and a consequent recovery, we saw the formation of sideways range around $0.57. Was this consolidation before a recovery?
From its November peak of $0.73, the price of XRP was in a downtrend. Although it consolidated around $0.61 for 48 days, it finally started crashing down on January 3, at which point we saw a decrease to $0.50 at its lowest. This was only short-lived as the price snapped back and closed at $0.58 but continued its downward trajectory.
On January 7, a low of $0.54 was made, after which it bounced back to $0.60 on January 11. It is still in a larger downtrend from last November but still trading higher compared to October and September lows.
At the time, we also saw a horizontal range that resembles the current one, which can be interpreted as a fractal, indicating another price growth ahead. If the support plateau remains higher, there is a strong chance that a new uptrend will follow.
Looking at the 4-hour chart, we can see that the resistance at $0.60 is strong, as it previously served as support. Now broken, it was retested on January 11, and a hard rejection followed.
Another low looks likely as the start of a new downturn is in development, but the $0.54 might hold it out. In the worst-case scenario, the price of XRP falls to the ascending support at the intersection with the horizontal one at $0.50.
After it clears one more low, XRP would finish at the apex of a larger-scale triangle and be poised for a breakout and steady upward journey in 2024.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.