XRP’s (XRP-USD) recent plunge might not be over yet. After reaching its highest point since January 2018 at $2.90, the cryptocurrency has dropped over 25%, hitting a low of $2.13 by December 23. This decline comes amid bearish technical signals and signs of profit-taking by large holders. According to Cointelegraph, XRP has been facing increasing pressure from these “whales,” who seem to be locking in profits and reducing their positions, signaling potential for a further dip.
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Bearish Technicals and Profit-Taking Push XRP Lower
XRP’s price is showing signs of weakness. It’s been stuck in a Fibonacci retracement range since early December, with resistance near $3 and support around $1.98. The recent price action suggests the token could fall by as much as 15% in the coming days, potentially testing the $1.98 mark. This bearish outlook is reinforced by XRP’s relative strength index (RSI) staying above 70, signaling overbought conditions and a likely slowdown, according to Cointelegraph.
Whales Pile on Pressure by Locking in Profits
The drop in price is also being fueled by XRP’s largest holders, who have been reducing their positions throughout December. As these whales offload their assets, it increases the circulating supply of XRP, pushing the price lower due to decreased demand. When whales cash out, the market typically feels the impact, which could lead to further downward momentum.
What’s Next for XRP? A Possible 20% Drop Ahead
Looking at XRP’s chart, there are signs that the worst might not be over. XRP is forming a descending triangle pattern, which often signals a bearish reversal. If the price falls below $2.19, it could see a drop to $1.69, a level that coincides with the 50-day exponential moving average. However, if XRP holds above that support, it could test higher levels around $2.50, and a breakout beyond that could invalidate the bearish setup, as analysts like Bark suggest.
At the time of writing, XRP is sitting at $2.2369.
