Whale wallets sold 560 million XRP in two weeks, reducing holdings to 7.8 billion.
XRP trades within a bearish wedge pattern, signaling potential further downside.
Technical indicators show a likely 15% decline if XRP breaks the $2.16 support level.
XRP continues to hold above the $2 mark, trading at $2.19 on July 1 with a modest 0.75% gain. The token has not been able to indicate a massive increase even after its daily trading volume increased by 122% in a month. This stagnant price action appears to be prompting large holders to liquidate their assets.
Santiment data indicates that wallets holding between 100 million and 1 billion XRP have reduced their balances from 8.36 billion to 7.8 billion in the past two weeks. This decline reflects a 560 million token sell-off, suggesting that large investors are exiting positions. The move adds to the selling pressure and may contribute to further downside.
Bearish Wedge Pattern Signals Market Shift
XRP has been trading within a rising wedge pattern for more than a week, typically considered a bearish signal. Support has formed at $2.17, but if this level fails to hold, the price may slip further. The four-hour chart shows a MACD crossover, with the line falling below the signal line, indicating weakening bullish momentum.
The technical analysis recommends that the price might fall up to 15% in case XRP plunges below the 2.16 point, and the next support level might reach $1.85. This decline may drive XRP out of its months-long stagnation zone and may trigger more selling by traders hoping to get a rebound. The consistent support at 2 could have also triggered sell orders, which compound the situation in case the token plunges below the mark.
Increased On-Chain Activity Signals Dormant Tokens Are Moving
A notable rise in the Age Consumed metric suggests that previously inactive tokens have entered circulation. This spike signals that long-held assets are now being traded or sold, which often happens in uncertain market conditions. The lack of sufficient demand may amplify the effects of increased supply on price performance.
Market observers are also watching Bitcoin’s trend closely. Any signs of a broader recovery across the crypto sector could support a potential XRP bounce. However, without a shift in current sentiment, the prevailing indicators point to continued pressure on Ripple’s value.
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