At the beginning of December, the price of Ripple (XRP) reached a peak of almost $3. Since then, XRP has been moving sideways in a consolidation phase as traders anxiously await the next price move. Currently, XRP is at a critical point, with technical signals and decreased whale activity pointing to a possible decline. What can we expect?
Technical analysis: risk of price decline
The technical analysis shows a symmetrical triangle, a pattern that often leads to a significant breakout. XRP is trading close to the upper trendline of this triangle around $2.31. A break of the lower trend line could see the price drop to $1.36, which represents a 40% correction. The lower limit of the triangle is around $2, while an upward breakout could actually push the price up to $3.46.
A worrying factor is the decline in the number of tokens held by large investors. Entities with at least 1 million XRP currently hold 90.5 billion tokens, up from 100 billion last year. This indicates increasing selling pressure, which could amplify a downward move.
Major Price Zones for XRP
On the weekly chart, XRP continues to move within a zone between $2 and $3. Although the price recovered from $2 last week, the upside remains limited. Analysts emphasize that the zone between $2.15 and $2.20 is crucial. If XRP falls below $2, a further decline towards $1.50—the 20-week EMA—could follow. However, if the price remains above $2, an increase to $3 remains realistic.
In addition, the Relative Strength Index (RSI) is still in the overbought area, indicating an increased risk of a correction.
What can we expect?
XRP is at a tipping point. Technical and fundamental factors indicate an increased risk of a significant price decline. A possible drop to $1.50 is a realistic scenario if the downward pressure continues. However, if XRP remains above $2, a move towards $3 could still be within reach. The symmetrical triangle pattern suggests that a clear direction will be chosen within a few weeks.
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Source: https://newsbit.nl/xrp-koers-onder-druk-correctie-naar-150/
