XRP is once again showing signs of strain as it moves around a key support zone near $1.33. The asset is hovering around this level, which now acts as immediate support, but the overall tone remains fragile. Short-term rebounds continue to face resistance, keeping sellers in control for the time being.
In brief
- XRP remains weak with a fragile tone as bearish patterns like a bearish pennant and descending triangle suggest further declines.
- Key support levels lie around $1.22, and a potential fall below $1.00 could follow if the selling intensifies.
- Large XRP holders are moving millions of tokens onto exchanges, signaling increasing selling pressure.
Bearish pattern persists across XRP time frames
On the two-day time frame, XRP forms a structure that resembles a bearish pennant. This pattern typically follows a sharp fall, with price moving within a narrowing channel marked by two sloping trendlines. Such formations often lead to a new downward move similar in size to the initial decline. For XRP, this pattern emerged after the sharp drop towards $1.12. If the price breaks below the lower edge of the pennant, it could drop towards $0.80, representing a drop of almost 40% from its current level.
The daily chart confirms this cautious view. XRP continues to post lower highs and lows, reinforcing the current downtrend. Price action remains below the 20-day moving average while a descending resistance line gradually compresses the range. This pattern resembles a descending triangle, a formation often linked to a bearish continuation if support gives way.
Momentum indicators also reflect continued weakness, visible in several key metrics:
- The Bollinger bands are tightening, showing that volatility is decreasing while the price remains near the lower band, indicating continued bearish pressure.
- The relative strength index (RSI) is hovering around 34, indicating weak momentum and a market approaching oversold conditions.
- Despite nearing oversold levels, the RSI has yet to signal a clear reversal, suggesting that sellers still dominate in the near term.
Key levels under watch
The BitGuru analyst recognized the broader downtrend and signaled the $1.22 area as a strong support level. According to him, maintaining this zone could allow gradual stabilization and potentially pave the way for a recovery phase.
From a technical perspective, however, the immediate focus remains on the current support at $1.33, which sets the stage for the next possible moves.
- If the price falls below this level, it could then head towards $1.22, marking the next significant support zone.
- If the selling intensifies further beyond $1.22, XRP could fall to $1.00 or even lower.
- On the upside, a recovery above $1.45, combined with a breakout of the descending resistance line, would be necessary to change the current bearish outlook.
XRP Whale Transfers Signal Growing Selling Pressure
As price action weakens, on-chain activity adds an additional layer of concern. Darkfost, contributor at CryptoQuant, reported that more than 31 million XRP was transferred to Binance. Most of these transfers came from the largest holders of XRP. Wallets holding more than 1 million XRP transferred 14.5 million tokens. Those between 100,000 and 1 million moved 14.2 million XRP, while wallets between 10,000 and 100,000 XRP moved 2.9 million tokens, with smaller groups contributing relatively minor amounts.
Darkfost explained that these transfers represent potential sell-side pressure equivalent to nearly $45 million. Such large inflows to an exchange often signal preparation for a liquidation. If this wave of selling persists, XRP may struggle to initiate a sustainable rebound in the near term, especially as technical indicators continue to lean towards a downtrend.
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