Key Insights
XRP’s inability to maintain the $3 mark suggests a potential decline towards the $2.40 to $2.00 range. Whale investors are increasingly selling their holdings of XRP. A decrease in daily active addresses indicates a drop in transaction activity and overall market liquidity.
XRP Price Charts Indicate Possible Declines
The daily XRP price chart reveals a descending triangle formation that has developed since the cryptocurrency peaked at $3.66. This pattern is defined by a stable support line paired with a descending resistance line. The recent price movement above the upper trendline of this triangle was a false breakout, as buyers failed to sustain momentum above the $3 level, highlighting a potential weakness in market strength.
Failure to regain the $3 level, which aligns with the 50-day Simple Moving Average (SMA), could lead to a decline of the XRP/USDT pair toward the next support level at $2.70. If the price falls further, key levels to monitor include the 200-day SMA at $2.50 and the target of the triangle pattern, approximately at $2.06, marking a potential 31% drop from current prices.
Bearish Indicators in XRP’s Technical Analysis
In addition to the descending triangle, the daily chart also displays a bear flag pattern, suggesting a possible drop to around $2.40 following the loss of support at $3. As previously reported, if XRP manages to surpass the $3 threshold, buyers may attempt to initiate a new upward trend by pushing the price above the flag’s upper boundary at $3.20. Success here could see XRP prices rise towards $3.40 and potentially reach the previous high of $3.66.
Whales Liquidate XRP Holdings at $3
Recent on-chain analytics indicate that large-scale investors capitalized on the latest price surge, selling off their XRP holdings as the price approached $3.10. According to the Supply Distribution metric, there has been a notable decline in the XRP reserves held by addresses with balances between $1 million and $10 million, now totaling 6.79 billion XRP, a six-week low. Over the past two weeks, these whales have sold more than 160 million XRP tokens, valued at approximately $476 million at current market rates, suggesting that they anticipate a downturn in prices despite positive developments such as pending spot ETF approvals and potential rate cuts by the Federal Reserve.
Increasing XRP Exchange Reserves Add to Market Pressure
Furthermore, a significant uptick in XRP reserves on exchanges has been reported by Glassnode, indicating growing selling pressure. The XRP balance on exchanges surged by 665 million tokens, rising to 3.94 billion from 3.3 billion since August 27, further amplifying the supply available for potential sale.
Declining Activity on the XRP Ledger
The XRP Ledger has experienced a marked decline in network activity over the past two months. Data from CryptoQuant reveals that the daily active addresses have plummeted from a peak of 50,482 on July 18 to around 21,000 currently. This downturn in user transactions could suggest waning interest or a lack of confidence in XRP’s short-term prospects.
Additionally, new addresses have dropped significantly from a high of 11,000 daily to just 4,300, indicating a decrease in network adoption and user participation. Historically, such reductions in network activity have foreshadowed price stagnation or declines, as lower transaction volumes can diminish liquidity and buying momentum.
This article is not intended as investment advice. All investment and trading decisions carry risks, and readers should perform their own thorough research before making any financial commitments.
