XRP Price Analysis: Bearish Reversal Signals Suggest Possible Drop by Early 2025

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Recent XRP Rise and Warning Signals

XRP has surged over 300% in the past two months, with a trading price of $2.10 on December 27. However, several warning signals have recently emerged, indicating that XRP may erase at least 25% of its gains in the short term.

Descending Triangle Pattern Points to a Pullback

XRP's price has recently been in a descending triangle pattern, which is a typical bearish structure that often signals further declines. This pattern consists of a series of lower highs and a horizontal support line (currently around $2.10). If XRP breaks below the $2.10 support level, it may trigger a deeper pullback. According to technical analysis, the potential downward target is around $1.64, suggesting that XRP may further decline by approximately 25% in January 2025.

Whale Sell-off Intensifies Bearish Sentiment

On-chain data reveals whale sell-off scenarios, which have intensified the bearish outlook for XRP. Data shows that investors holding over 1 million XRP have reduced their holdings by 180 million XRP since early December. Meanwhile, investors holding 100,000 XRP have also reduced their holdings by 170 million XRP. Whale sell-offs typically lead to an increase in market supply, putting pressure on prices. Since XRP's price pulled back from $2.90, it has dropped over 26%, consistent with whale sell-off activities.

Binance XRP Reserves Increase: Bearish Signal

Additionally, XRP reserves on the cryptocurrency exchange Binance have steadily increased since mid-December, which is often a leading signal of price adjustments. An increase in reserves typically indicates profit-taking by investors, further reinforcing the downward trend for XRP.

Conclusion: 25% Downside Risk

Unless there is a trend reversal, XRP's price faces at least a 25% downside risk due to the sell-offs by large holders and increased supply from exchanges.

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