At the moment, XRP is up less than 1% in the last 24 hours but is still down 16.5% for the month. Despite a strong July, the altcoin continues to show short-term weakness.

Whale activity is strong, EMA indicators are about to confirm another death cross, and key price thresholds are all under threat. All three of these factors indicate potential for short-term decline - especially for traders looking for opportunities in the next wave of volatility.

Whales simultaneously push Tokens into the exchange

The flow of money from whales into Binance has started to increase again after maintaining low levels since August 13. On that day, the inflow to the exchange was around 29,805 XRP, and shortly after, the price of XRP dropped from $3.27 to $3.08.

Whale Money Flow to Exchanges Chart | Source: CryptoQuant

The flow of money from Whales to Exchanges is an indicator used to track the volume of tokens that whales transfer to centralized exchanges - often a signal of their selling intentions.

As of August 21, deposits from whales have increased sevenfold from the local low on August 16, from 900 XRP to 6,293 XRP. Historical data shows that such increases often lead to subsequent price declines. Specifically, when the money flow surged on July 30, the price dropped from $3.09 to $2.76; and on August 3, the price fell from $3.07 to $2.96 in the following days.

If this new surge surpasses the threshold of August 13, it will mark a new peak in whale money flow - something not recorded during this bearish market phase. At that time, selling pressure is likely to increase, causing short-term strain.

XRP will record the "Death Cross" for the 3rd time

The 4-hour price chart of XRP shows that bearish momentum is forming rapidly. Two death crosses from the EMAs have been confirmed (red arrows) and a third death cross is gradually appearing.

An EMA death cross occurs when a short-term moving average crosses below a long-term moving average, often signaling a trend reversal. If the third death cross forms, the XRP price chart will have three bearish patterns within less than a week.

Each previous death cross has been accompanied by a strong collapse:

On August 15 (EMA 20 crossing EMA 50): the price fell from $3.12 to $2.93

On August 18 (EMA 50 crossing EMA 100): the price fell from $3.03 to $2.93

The third death cross - occurring when the EMA 50 crosses below the EMA 200 - is considered much more important as it reflects a broader trend change, not just a short-term weakness. When the whale money flow also surges at the same time, the bearish EMA setup further reinforces the bearish potential. This pattern shows that short sellers are increasingly dominant, coinciding with selling pressure from whale token dump.

An important price threshold to watch

The daily chart shows that XRP continues to struggle around the Fibonacci level of $2.95. XRP has tested this level but has been unable to turn it into a support area.

The next important support level is $2.81 - previously a strong reversal area. If this level is broken, the next downward target will be $2.72, which is the final support level before the price faces the risk of a larger decline.

A recovery can only occur if XRP regains $3.16 - the Fibonacci 0.618 level that has acted as a resistance area for most of August. If this scenario occurs, the short-term bearish outlook will weaken.

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