XRP Price Set to Fall 20%, Chart Signals Imminent Sell-Off
After notable upward rallies in the past, Ripple Labs’ native token XRP is about to undergo a price correction as its chart flashes a sell signal. However, this bearish or negative outlook is further supported by major shareholders.
Whale dumps 40 million XRP tokens
Today, December 4, 2024, blockchain-based transaction tracker Whale Alert posted on X (formerly Twitter) that a crypto whale dumped 39.99 million Bitcoins. Ripple $103.18 million worth of tokens. Coinbase, the largest cryptocurrency exchange in the United States, witnessed this massive sell-off.
The sharp sell-off by whales is currently consistent with a bearish price action pattern. According to expert technical analysis, XRP has formed a bearish head and shoulders pattern on the hourly time frame.
In trading and investing, this pattern often signals a sell-off, with a significant price drop typically observed on the chart whenever an asset breaks above the neckline.
XRP technical analysis and follow-up analysis
Experts and analysts are currently expecting similar price action in the coming days. If XRP breaks out of the neckline of this bearish pattern and closes below $2.40, a 20% drop is very likely, potentially taking the price down to $2 in the near future.
However, XRP’s relative strength index (RSI) currently stands at 34, which is close to oversold territory, indicating potential upward momentum. Additionally, XRP is trading above the 200 exponential moving average (EMA) on the daily time frame, indicating an uptrend.
Traders bearish outlook
On-chain analytics firms further support this bearish outlook coin glass. Currently, the XRP long-short ratio is 0.88, indicating strong bearish sentiment among traders in the market.
Currently, 53.20% of the top traders hold short positions and 46.80% of the top traders hold long positions.
Combining all of these factors, recent whale activity, bearish price action patterns, and bearish on-chain indicators, it appears that bears currently dominate the asset in the short term. This suggests that XRP is likely to face a price correction or decline in the coming days.
Current Price Momentum
At press time, XRP was trading near $2.40, with the price down 6.5% in the past 24 hours. During the same period, its trading volume fell by 55%, indicating reduced participation from traders and investors amid low market sentiment.
