Why the XRP Token Price May Struggle Above $2
Ripple’s XRP price has fallen sharply in recent weeks after surging nearly 500% between November 6 and December 3. The altcoin has been in a downward trend since reaching multi-year highs of $2.90 on December 3.
As bearish momentum builds, the cryptocurrency is expected to break below the $2 support in the near term. This analysis explains why this happens.
Ripple Coin Suffers Sell-Off Surge
Evaluation of XRP/USD One-chart shows that since peaking at $2.90 on December 3, the cryptocurrency has been stuck in a descending triangle, a bearish technical pattern.
This pattern occurs when an asset price creates a series of lower highs while maintaining horizontal support. This pattern indicates increasing selling pressure and often signals a potential bearish breakout if the price breaks below support.
For XRP, this support formed at the key $2 price level. However, as selling pressure intensifies, bulls may find it challenging to defend this price point at this time. One of the reasons for this is the lower accumulation of XRP whales in recent weeks.
According to Santiment, XRP Whale Control Since December 4, 350 million XRP have been reduced from 10,000,000 to 100,000,000 XRP. This means that during the period under review, this group of XRP investors sold a total of $746 million worth of the token, causing downward pressure on its price.
The decrease in whale accumulation is concerning as these large holders typically stabilize the market by holding large amounts of coins. Their selling activities may trigger panic among small and medium investors, exacerbating price declines and increasing market volatility.
XRP Price Prediction: Can $2 Hold?
On the daily chart, XRP is currently trading at the following prices Its 20-day exponential moving average (EMA), which calculates the average price of an asset over the past 20 days, puts more emphasis on recent prices to better capture short-term trends.
When an asset price falls below this key moving average, it confirms bearish sentiment, indicating a downward trend or increasing short-term selling pressure.
If selling pressure intensifies, XRP token price may fall below the $2 support level provided by the lower line of the descending triangle. In this case, the price of the coin will plummet to $1.88. If this level fails to hold, XRP price may fall further to $1.34.
On the other hand, if the sentiment changes from bearish to bullish, Ripple price It will climb above the 20-day EMA, which provides dynamic barrier or resistance at $2.18. A successful break above this level could push the XRP token price to multi-year highs of $2.90.
Disclaimer
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