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The price of Ripple (XRP) has seen a spectacular increase of over 300% in the last 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 Drop by 25%!
The XRP crypto is currently in a descending triangle pattern, a bearish structure that generally indicates new declines. This pattern is defined by a series of lower peaks 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 drop to around $1.64 in January 2025, a decrease of about 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 one million tokens – has decreased by 180 million since the beginning of December. Similarly, the supply held by entities with a balance of 100,000 XRP has dropped by 170 million. These declines in supply from both address cohorts align with the price decrease of over 26% of XRP from its local peak of $2.90.
Ripple Reserves Increase on Binance
Moreover, XRP reserves on Binance, the largest crypto exchange by volume, have been steadily increasing since mid-December, a signal generally bearish as it often precedes price corrections. Unless this trend reverses, all this suggests a possible 25% drop in the price of XRP in the coming days.
In summary, although XRP has experienced impressive gains recently, becoming the 3rd cryptocurrency by market capitalization, warning signs indicate a possible short-term correction. Crypto investors should remain vigilant and closely monitor developments to adjust their strategies accordingly.
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Le monde évolue et l’adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m’intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l’optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
