Ripple Labs’ native token XRP has been on a notable upside rally recently, but it seems like a price correction is on the horizon as the chart is showing a sell-off signal. This bearish outlook is further supported by large holders of XRP.
Today, on December 4, 2024, Whale Alert, a blockchain-based transaction tracker, reported that a crypto whale dumped a substantial 39.99 million XRP tokens, worth $103.18 million, on Coinbase, the largest cryptocurrency exchange in the United States. This massive dump coincides with a bearish price action pattern as XRP has formed a head-and-shoulders pattern on an hourly timeframe, indicating a potential sell-off.
Experts and analysts are anticipating a similar price movement in the coming days. If XRP breaks below the neckline of the bearish pattern and closes below the $2.40 level, a 20% decline could be expected, bringing the price down to $2 in the near future.
Despite the bearish outlook, XRP’s Relative Strength Index (RSI) is close to the oversold zone at 34, suggesting potential upside momentum. Additionally, XRP is trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend.
On-chain analytics firm Coinglass also supports the bearish sentiment, with the XRP Long/Short ratio currently at 0.88, indicating a strong bearish market sentiment among traders. Currently, 53.20% of top traders hold short positions, while 46.80% hold long positions.
Considering the recent whale activity, bearish price action patterns, and bearish on-chain metrics, it seems that bears are in control of XRP in the short term. This suggests a potential price correction or decline in the coming days.
As of now, XRP is trading around $2.40, with a 6.5% decline in the past 24 hours. The trading volume has also dropped by 55%, indicating lower participation from traders and investors amidst the bearish market sentiment.