XRP (XRP-USD) has been on a remarkable rally, soaring more than 300% over the past two months to reach $2.20 by December 27. However, warning signs are surfacing that could signal a sharp downturn in early 2025. The cryptocurrency is currently trading within a descending triangle pattern, a technical formation that typically suggests further declines. If XRP breaks below its $2.10 support, it could face a 25% drop, potentially falling to $1.64 by January.
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Whales Sell XRP and Cause Ripple Effect
Onchain data reveals that large XRP holders, or “whales,” have been selling off significant portions of their holdings, with 180 million XRP sold by wallets holding over 1 million tokens. This selling activity has added downward pressure on the price. Additionally, XRP reserves on Binance have been steadily increasing, indicating that more tokens are being moved to exchanges—often a precursor to price corrections. According to CoinDesk, these developments suggest that XRP may be primed for a pullback.
At the time of writing, XRP is sitting at $2.2010.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
