#BitwiseBitcoinETF

Warning signals about the price of XRP appear after 300% gains in two months

Whale distribution and a compelling bearish reversal indicator prepare XRP for new price drops in early 2025.

The price of XRP has risen more than 300% in the last two months and was trading at $2.10 on December 27. Nevertheless, warning signals suggest that XRP/USD may erase at least 25% of those gains in the short term.

XRP is nearing the breakdown of the descending triangle

Recent losses occur as its price trades within a descending triangle pattern, a bearish structure that typically indicates new declines.

This pattern is defined by a series of lower highs that form the downward trend line of the triangle, while the $2.10 level acts as horizontal support.

A decisive break below the $2.10 support level could open the door to a deeper correction. The potential target for this breakdown is calculated by subtracting the height of the triangle from the breakout point, according to technical analysis rules.

Related: XRP price needs to reclaim $2.30 to absorb the buy wall, says analyst

In other words, the price of XRP could drop to approximately $1.64 in January 2025, about 25% less than current price levels.