Can XRP Price Hold Above $2 Amid Bearish Pattern as Whales Sell 150M Tokens?

XRP price is down 5% in 24 hours as investors abandon risk assets due to geopolitical concerns. On June 13, XRP traded at $2.14 with an 80% surge in daily trading volumes, which stood at $4.6 billion. The price continues to defend the $2 support level, but the emergence of a bearish rounding top pattern and the recent sale of 150 million Ripple tokens by whales have sparked concerns about whether it could lose this critical support.

XRP Price Could Drop Below $2 Amid Bearish Pattern

XRP price has formed a rounding top pattern on the four-hour chart, which often signals that a trend is about to flip bearish. In fact, Ripple’s native token had already breached the neckline support of this pattern after the widespread crypto market crash caused a steep decline.

The depth of the bearish rounding top pattern shows that after breaching the $2.12 support level, XRP could crash by another 9%. If this happens, XRP can fall below $2 to $1.93. Dropping to this level will mark the lowest price for this altcoin in more than two months.

The MACD indicator supports the bearish technical outlook as buyers remain on the sidelines despite Ripple’s CEO raising optimism of XRP Ledger capturing SWIFT’s market share. The MACD line has dropped into the negative region while the negative histogram bars indicate that the momentum remains bearish.

The downward sloping on-balance volume (OBV) indicator also confirms the strength of the downward trend in XRP price. The decline shows that selling volumes are outweighing buying volumes, and this usually signals distribution and bearish pressure on the market. It also shows weak conviction among buyers.

The bearish outlook painted by the rounding top could become invalid if XRP price resumes the upward trend and hits the top of this pattern at $2.33. As CoinGape reported, a recovery for Ripple’s price could occur ahead of the SEC’s decision on a spot ETF.

Whales Sell 150M Tokens

The other factor that could cause XRP price to drop below the $2 psychological support level is whale selling. Santiment data shows distribution behavior by the addresses holding between 10 million and 100 million coins. In the last five days, these addresses have seen their holdings fall from 7.64 billion to 7.49 billion, suggesting that they have sold 150 million coins.

As the above chart shows, these addresses have not been willing to accumulate Ripple tokens even during the ongoing dips. Their holdings have declined to the lowest level since late April, which shows they have been in an active distribution phase.

In conclusion, XRP price faces bearish headwinds after the broader crypto market crash forced the price below the $2.12 support level. This drop confirmed a bearish breakdown from a rounding top pattern, signalling that a 9% crash to $1.93 may be imminent. Whales selling 150M Ripple tokens in the last 24 hours further reinforces the bearish outlook.