After notable gains in the past, Ripple Labs’ native token XRP is poised for a price correction as it shows a sell-off signal on its chart. However, this bearish or negative outlook is receiving support from large shareholders.
Keith dumped 40 million XRP tokens
Today, December 4, 2024, blockchain-based transaction tracker Whale Alert posted on X (formerly Twitter) that a crypto whale had dumped a significant 39.99 million XRP tokens worth $103.18 million. This massive dump occurred on Coinbase, the largest cryptocurrency exchange in the United States.
🚨 🚨 🚨 🚨 🚨 39,999,989 #XRP ($103,181,519) transferred from unknown wallet to #Coinbasehttps://t.co/RxWiHTHdOf
— Whale Alert (@whale_alert), December 4, 2024
The significant whale reset is currently consistent with a bearish price action pattern. According to expert technical analysis, XRP has formed a bearish head and shoulders pattern on the hourly timeframe.
In trading and investing, this pattern often signals a sell-off, and whenever an asset breaks the neckline, there is usually a noticeable decline in price on the chart.
XRP Technical Analysis and Upcoming Analysis
Experts and analysts are now expecting a similar price impulse in the coming days. If XRP breaks the neckline of this bearish pattern and closes the daily candle below the $2.40 level, there is a strong possibility of a 20% decline, potentially pushing the price down to $2 in the near future.
However, XRP’s Relative Strength Index (RSI) currently stands at 34, which is close to oversold territory, indicating potential upside momentum. Additionally, XRP is trading above the 200 exponential moving average (EMA) on the daily timeframe, indicating an uptrend.
Bearish traders forecast
This bearish outlook is also confirmed by analytics firm Coinglass. Currently, XRP’s long to short ratio is 0.88, indicating strong bearish sentiment among traders.
Currently, 53.20% of top traders are short while 46.80% are long.
Combining all these factors, recent whale activity, bearish price action patterns and bearish on-chain indicators, it appears that bears are currently dominant over the asset in the short term. This suggests a high probability that the XRP price may experience a price correction or decline in the coming days.
Current price momentum
At the time of publication, XRP is trading around $2.40 and has recorded a 6.5% price decline over the past 24 hours. Over the same period, trading volume fell 55%, indicating lower participation by traders and investors amid bearish market sentiment.
