XRP Faces Significant Downside Risk Amid Whale Selling and Market Pressure

XRP’s price is in a descending triangle, suggesting a potential breakdown and further losses if it cannot hold the $2.00 support.

Whale activity has caused a significant sell-off, offloading over 2.23 billion XRP tokens, contributing to market bearishness.

A potential short-term recovery could emerge if XRP holds the $2.00 support level, with the $2.72 resistance looming.

XRP’s price has come under renewed pressure as the broader cryptocurrency market struggles with heightened volatility. Over the past week, many large-cap tokens have failed to hold crucial support levels, and Ripple’s native asset has suffered more significant declines. Uncertainty surrounding investor sentiment and whale movements has intensified, leaving XRP in a fragile state.

XRP’s price action has been following a descending triangle pattern since late July, characterized by lower highs approaching a stable support base around $2.72. Currently, XRP is trading at $2.47, having dropped over 5% in the last 24 hours, signaling continued bearish momentum. This technical formation typically points to an impending breakdown, especially when coupled with falling trading volume and repeated rejections at the descending trendline. The October 10 crash worsened the bearish outlook, pushing XRP beneath its previous accumulation zone, reinforcing the analyst’s warnings.

Whale Activity Contributes to Market Downturn

Whale movements have become a primary factor behind XRP’s recent downturn. On-chain data reveals that over 2.23 billion XRP tokens have been sold since Friday. This mass distribution highlights a growing bearish sentiment among major holders after XRP failed to defend the $2.72 support. The large-scale selling pressure has reduced liquidity and diminished the potential for a short-term recovery as smaller investors hesitate to enter the market.

Source: TradingView

Also, the Taker Sell imbalance between buyers and sellers is dominant in Spot Taker CVD, which supports the existing bearish bias. Sponsors are aggressively pushing the market down, with buyers being more wary and limiting exposure. This imbalance continues to leave XRP vulnerable to further downside threats, although the asset may recover if it re-enters the price ceiling that is the demand zone at $2.00.

Support of $2.00 could give temporary relief.

In the past, the support zone of $2.00 has caused rebounds following the serious decline in prices. Although market sentiment is in the air, provided that XRP can maintain itself almost at this point, there is a short-term chance that it can recover to the $2.72 resistance. But should the level of support give way, the token may experience further decreases before any form of recovery.

XRP is at the mercy of more whale selling and technical failures. The level of $2.00 is now a critical point to monitor, and any failure to maintain this point can result in further downfalls in the coming days.

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