The price of Ripple (XRP) has seen a dramatic rise of over 300% in the past two months, reaching $2.10 on December 27, 2024. However, warning signs suggest that the XRP crypto could collapse by at least 25% in the coming days.
Crypto: XRP could soon fall by 25%!
The XRP crypto is currently in a descending triangle pattern, a bearish structure that generally indicates further declines. This pattern is defined by a series of lower highs forming the descending trendline of the triangle, while the $2.10 level acts as horizontal support. A decisive break below this support level could pave the way for a deeper correction. In other words, Ripple (XRP) could fall to around $1.64 in January 2025, a drop of around 25% from current levels.
On-chain data reinforces this bearish outlook. Notably, the supply of XRP held by crypto whales – those with a balance of over 1 million tokens – has decreased by 180 million since the start of December. Likewise, the supply held by entities with a balance of 100,000 XRP fell by 170 million. These declines in supply from both address cohorts align with XRP's more than 26% price decline from its local high of $2.90.
Ripple reserves increase on Binance
Additionally, XRP reserves on Binance, the largest crypto exchange by volume, have been rising steadily since mid-December, a generally bearish signal as it often precedes price corrections. Unless this trend is reversed, all this adds up to a possible 25% drop in XRP price in the coming days.
In short, although XRP has seen an impressive rise recently, becoming the 3rd largest cryptocurrency by market capitalization, warning signs point to a possible short-term correction. Crypto investors should remain vigilant and closely monitor developments to adjust their strategies accordingly.
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