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XRP is currently facing significant bearish pressure as it risks falling below the pivotal $2 support level due to a developing downward trend.
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Recent data reveals that XRP whales have sold approximately 350 million tokens valued at $746 million, exacerbating market instability.
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With XRP trading below its 20-day EMA, there is a projected possibility of price dips to levels of $1.88 or even $1.34 should current support fail.
Ripple’s XRP struggles as whales offload millions in tokens, pushing the price down towards critical support levels amid rising bearish sentiment.
XRP Faces Increasing Selling Pressure Amid Whale Movements
After a dramatic surge of nearly 500% between November 6 and December 3, where XRP reached a multi-year high of $2.90, the cryptocurrency’s price has faced a significant downturn. As of now, it appears trapped within a descending triangle pattern, indicating growing bearish sentiment and heightened selling pressure. This technical formation complicates bullish efforts to maintain the $2 support, leading to fears of a potential price drop.
The descending triangle is characterized by lower highs and a flat support level, often heralding a bearish breakout. With $2 acting as a critical support, the bulls face a challenging task in sustaining this pivotal price point. Delving deeper into whale activity reveals that significant sell-offs contribute to the selling pressure.
As per insights from Santiment, large holders controlling between 10,000,000 and 100,000,000 XRP have significantly decreased their holdings by 350 million tokens since December 4. This sell-off of over $746 million has intensified the downward trajectory of XRP’s price.
The decline in whale accumulation raises concerns, as these substantial holders typically lend stability to the market with their retained investments. Their recent selling behavior could incite panic among retail investors, amplifying market volatility.
Assessing XRP’s Future: Will the $2 Support Hold?
Current indicators reveal that XRP is trading below its 20-day exponential moving average (EMA), a critical threshold that often signals bearish sentiment. This situation suggests intensified selling pressure, further jeopardizing the $2 support level.
If the downward trend persists, XRP may breach this crucial support, with potential price points dipping to $1.88, and if this level fails to hold, down to $1.34. A clear below $2 sentiment indicates that the market could recalibrate its outlook toward a prolonged bearish mode.
Conversely, a shift in market sentiment could alter the trajectory for XRP. Should XRP reinforce bullish momentum and surpass its 20-day EMA, approaching resistance at $2.18, this could ignite a rally back toward its recent highs around $2.90.
Conclusion
In summary, XRP is navigating a precarious landscape influenced by sizable sell-offs from whale investors and technical headwinds. The potential breach of the $2 support could signify deeper losses, placing it at risk of retesting significant lower support levels. Investors should remain vigilant, observing market sentiment closely as external factors and internal developments continue to evolve, shaping the future trajectory of XRP.
