In recent times, XRP, the native cryptocurrency of Ripple Labs, has enjoyed a significant upward rally. However, the current market dynamics suggest that a price correction might be imminent. The XRP chart is flashing sell-off signals, and this bearish outlook is being reinforced by the actions of large holders.
Whale Dump: 40 Million XRP Tokens
On December 4, 2024, a blockchain-based transaction tracker, Whale Alert, reported a substantial transaction. A crypto whale offloaded a massive 39.99 million XRP tokens, valued at approximately $103.18 million. This transaction was executed on Coinbase, the largest cryptocurrency exchange in the United States. Such a significant dump aligns with a bearish price action pattern.
Technical analysts have observed that XRP has formed a bearish head-and-shoulders pattern on an hourly timeframe. In the world of trading and investing, this pattern is often a precursor to a sell-off. When an asset breaks through the neckline of this pattern, it typically experiences a notable price decline.
XRP Technical Analysis and Upcoming Trends
Experts and analysts are forecasting a similar price trajectory for XRP in the near future. Should XRP breach the neckline of this bearish pattern and close a daily candle beneath the $2.40 level, a 20% decline is anticipated. This would potentially reduce the price to around $2.
Nevertheless, there are some indicators of potential upward movement. XRP’s Relative Strength Index (RSI) is currently at 34, which is nearing the oversold territory, hinting at possible upward momentum. Moreover, XRP is trading above the 200 Exponential Moving Average (EMA) on a daily timeframe, suggesting a longer-term uptrend.
Traders’ Bearish Outlook
The bearish sentiment surrounding XRP is corroborated by on-chain analytics firm Coinglass. The current XRP Long/Short ratio stands at 0.88, reflecting a strong bearish sentiment among traders. Presently, 53.20% of top traders are holding short positions, while 46.80% are maintaining long positions.
When considering these factors—recent whale activities, bearish price action patterns, and on-chain metrics—it becomes evident that bears are exerting significant influence over XRP in the short term. This suggests a strong possibility of price correction or decline in the days ahead.
Current Price Momentum
As of now, XRP is trading close to $2.40, having experienced a 6.5% price decline over the past 24 hours. During this period, trading volume decreased by 55%, indicating reduced participation from both traders and investors, likely due to the prevailing bearish market sentiment.
