Crypto: These Indicators Predict An Imminent Drop In XRP!

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.