XRP is at risk of falling below the critical $2 support level amid a developing downtrend. This could create significant selling pressure. According to the latest data, XRP whales have sold around 350 million tokens, removing $746 million from the market, which negatively affects market stability.
XRP is trading below its 20-day exponential moving average (EMA), raising the possibility that prices could drop to $1.88 or even $1.34 if the current support level fails. With whales selling, the price of XRP is facing increasing bearish sentiment as it falls towards critical support levels.
XRP Struggled by Whale Selling and Increasing Selling Pressure
After a dramatic 500% rally between November 6 and December 3, XRP later experienced a major decline, reaching a multi-year high of $2.90. As of now, XRP is stuck in a falling triangle formation, indicating increasing selling pressure and bearish sentiment. This technical structure is complicating bulls’ efforts to defend the $2 support level and raising concerns about a potential price drop. A falling triangle formation consists of lower highs and a flat support level, and is often a precursor to a bearish breakout. Given the critical role of the $2 support, bulls are likely to struggle to defend this level.
According to data from Santiment, large investors who control between 10,000,000 and 100,000,000 XRP have reduced their holdings by 350 million tokens since Dec. 4. This equates to a sell-off volume of over $746 million and further solidifies the downtrend in XRP’s price. The dwindling holdings of whales are cause for concern, as these large investors typically maintain a significant balance of holdings to ensure market stability. The recent sell-off could create panic among retail investors and increase market volatility.
XRP Future: Will $2 Support Level Hold Its Resistance?
Current indicators show XRP trading below its 20-day exponential moving average (EMA), which is usually a bearish signal. This suggests that the $2 support level is under threat and selling pressure is increasing.
If the downtrend continues, XRP could lose the critical $2 support and prices could drop to $1.88. If that level does not hold, prices could drop to $1.34. A trend below $2 suggests the market could enter a longer bearish phase.