XRP price rises 300% in two months, warning signs emerge

The price of XRP has risen more than 300% in the past two months and was trading at $2.10 on December 27. Nonetheless, there are warning signs that XRP/USD could erase at least 25% of these gains in the near term.

XRP is close to a descending triangle collapse.

The latest losses in XRP (XRP) come as the price is trading within a bearish triangle pattern. This is a bearish structure that usually indicates further decline.

This pattern is defined by a series of lower highs forming a triangular descending trendline, with the $2.10 level acting as horizontal support.

A decisive decline below the $2.10 support level could open the door to a deeper correction. The potential downside target for this classification is calculated by subtracting the height of the triangle from the classification point according to technical analysis rules.

relevant: XRP Price Needs to Recover $2.30 to Absorb Buying Barrier — Analyst

This means that the price of XRP could fall to around $1.64 in January 2025, about 25% below its current price level.

XRP whales sell ripoffs

On-chain data further supports the bearish outlook, with indicators tracking whale addresses revealing retail sentiment.

In particular, the supply of XRP held by the wealthiest investors with balances of more than 1 million tokens has decreased by 180 million since early December.

Meanwhile, the supply held by companies holding 100,000 XRP balances has decreased by 170 million. The decline in supply for both address groups coincides with a price decline of more than 26% from XRP’s local high of $2.90.

A large whale sale could result in downward price pressure due to the increased supply of tokens in circulation. Combined with falling prices, this suggests that selling activity has overwhelmed demand.

Binance’s XRP Supply Is Growing

Additionally, XRP holdings on Binance, the largest cryptocurrency exchange by trading volume, have been steadily increasing since mid-December, which is typically a bearish signal that precedes a price correction.

The rise in foreign exchange reserves reinforces the narrative of profit taking from local highs, contributing to XRP’s continued bearish momentum.

Unless this trend is reversed, the XRP price could face a 25% downside risk as supply on exchanges increases and large holders continue to sell ripoffs.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.