XRP Price Rally at Risk: 25% Correction Looms Amid Bearish Signals
A recent surge in XRP’s price, which saw a 300% increase over the past two months, may be short-lived as warning signs point to a potential 25% correction in the short term.
Descending Triangle Pattern: A Bearish Signal
XRP’s recent losses are occurring within a descending triangle pattern, a bearish structure that typically signals further declines. This pattern is characterized by a series of lower highs forming the triangle’s descending trendline, while the $2.10 level acts as horizontal support. A decisive breakdown below this support level could open the door to a deeper correction.
Potential Downside Target: 25% Decline
According to technical analysis, the potential downside target for this breakdown is approximately $1.64 by January 2025, down about 25% from current price levels. This calculation is based on subtracting the triangle’s height from the breakdown point.
Whale Selling Activity and Rising Exchange Reserves
On-chain data supports a bearish outlook, with metrics tracking whale addresses revealing distribution sentiment. Notably, the XRP supply held by its richest investors has declined by 180 million since the beginning of December. Similarly, XRP reserves on Binance, the largest cryptocurrency exchange by volume, have been steadily increasing since mid-December, often a bearish signal preceding price corrections.
Implications for XRP Price
Unless this trend reverses, XRP price could face 25% downside risks as supply on exchanges grows and large holders continue to sell. As always, it’s essential to conduct your own research and consider multiple perspectives before making any investment decisions.
Source: Cointelegraph.com
