XRP, the native token of Ripple Labs, has recently experienced a notable upside rally. However, the current chart signals a potential price correction, with large holders further supporting this bearish outlook.
Whale Dump 40 million XRP Tokens
On December 4, 2024, Whale Alert reported that a crypto whale had dumped a significant 39.99 million XRP tokens, valued at $103.18 million, on Coinbase, the largest US-based cryptocurrency exchange.
This massive dump coincides with the formation of a bearish head-and-shoulders pattern on the XRP chart, typically indicating a sell-off and potential price decline upon breaching the neckline.
XRP Technical Analysis and Upcoming Analysis
Analysts predict a similar downward momentum in the coming days. If XRP breaks below the $2.40 level and closes a daily candle beneath it, a 20% decline to $2 is likely in the near future.
Despite the bearish pattern, XRP’s Relative Strength Index (RSI) near oversold levels and its position above the 200 Exponential Moving Average (EMA) on the daily chart suggest a potential upside.
Traders Bearish Outlook
Coinglass, an on-chain analytics firm, reports a XRP Long/Short ratio of 0.88, indicating a strong bearish sentiment among traders. Currently, 53.20% of top traders hold short positions, while 46.80% hold long positions.
With the recent whale activity, bearish chart patterns, and negative on-chain metrics, bears seem to dominate XRP’s short-term outlook, suggesting a potential price correction or decline.
Current Price Momentum
XRP is currently trading around $2.40, having dropped 6.5% in the past 24 hours. The decreased trading volume by 55% indicates reduced participation amidst the prevailing bearish market sentiment.