The current volatility in the cryptocurrency market has left traders and investors confused. Amid this, XRP, the native token of Ripple Labs, is poised for a price decline as sentiment among crypto enthusiasts shifts toward the bearish side.
Recently, a prominent crypto expert posted on X (formerly Twitter) that crypto whales have dumped over 70 million XRP tokens onto exchanges in the past four trading days. This massive sell-off has garnered significant attention from crypto participants.
The market considers such dumps as a bearish signal, potentially leading to a notable price decline, which is currently reflected in the XRP price.
The asset is currently trading near $2.97 and has experienced a price decline of over 4.45% in the past 24 hours. During the same period, its trading volume has remained stable, showing no significant change.
According to expert technical analysis, XRP has been moving within a descending parallel channel on a daily timeframe. However, the price has formed a bearish engulfing candlestick pattern and appears to be declining
Based on recent price action and historical momentum, there is a strong possibility that XRP could drop by over 8.5% to reach its support level at $2.75.
Despite the bearish market outlook, the altcoin has managed to hold above the 200 Exponential Moving Average (EMA) on the daily timeframe, suggesting that XRP is in an uptrend.
Looking at the bearish price action, traders are strongly betting on the downside, as revealed by CoinGlass data. At press time, $2.91 is a level where bulls are over-leveraged, holding $28 million worth of long positions. Conversely, short sellers are over-leveraged at the $3.10 level, holding $56.30 million worth of short positions.
This data indicates that short sellers are dominating the asset and could trigger a liquidation of the bulls’ open positions if the price falls below the $2.91 level.
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