Ripple Labs’ native token, XRP, after experiencing a substantial upward rally, is currently signaling a potential price correction. The charts are indicating a sell-off, and this bearish sentiment is supported by actions from significant token holders.
Whale Activity: 40 Million XRP Tokens Dumped
On December 4, 2024, Whale Alert, a blockchain transaction tracking service, reported a significant movement in XRP. A crypto whale offloaded approximately 39.99 million XRP tokens, valued at $103.18 million, on Coinbase, the largest cryptocurrency exchange in the United States. This substantial token dump correlates with a downward price trend, as XRP’s chart reveals a bearish head-and-shoulders pattern on the hourly timeframe. Such patterns are typically indicative of a sell-off, and once the asset breaks the neckline, a notable drop in price is often observed.
XRP Technical Analysis and Future Trends
Technical experts and market analysts are forecasting similar price movements in the near future. Should XRP breach the neckline of the bearish pattern and close a daily candle under the $2.40 mark, a substantial 20% decline is plausible, potentially reducing the price to $2. Nonetheless, the Relative Strength Index (RSI) for XRP is currently at 34, close to the oversold territory, which may suggest potential upward momentum. Additionally, XRP’s current trading position above the 200 Exponential Moving Average (EMA) on the daily chart indicates a possible uptrend.
Traders’ Bearish Perspective
The bearish sentiment is reinforced by data from Coinglass, an on-chain analytics firm. The XRP Long/Short ratio presently stands at 0.88, reflecting strong bearish sentiment among traders. Currently, 53.20% of top traders are holding short positions, compared to 46.80% with long positions. The combination of recent whale activities, bearish chart patterns, and on-chain metrics suggests that bearish forces are dominant in the short term. This outlook implies a significant chance of a price correction or decline for XRP in the upcoming days.
Current Price Momentum
As of the latest update, XRP is trading close to $2.40, having experienced a 6.5% price decline over the past 24 hours. During this period, trading volume has decreased by 55%, indicating reduced engagement from traders and investors amid a bearish market sentiment.
