Rising Wedge Predicts XRP Price May Crash 10% Amid 200M Whale Selloff

XRP price trades at $2.14 on June 18 with 1 32% decline in daily trading volumes as market interest wanes. Following today’s decline, XRP is now down by 8% in the last week as crypto prices retrace due to concerns about the Israel-Iran conflict. The appearance of a rising wedge pattern on a four-hour chart signals that a 10% crash may be imminent after whales sold 200 million tokens.

XRP Price Faces 10% Drop Amid Rising Wedge Pattern

XRP price is facing another crash after a rising wedge pattern emerged on the four-hour chart, indicating that the short-term momentum is about to turn bearish. This pattern appears when the price is making higher highs, albeit with higher lows, indicating that the buying pressure is gradually growing weaker.

XRP is tipping south again, and it is now testing the lower boundary support line. If this support fails to hold, then a more than 10% crash may ensue from the lower boundary line to $1.85. This decline will add weight to a recent analysis by CoinGape, noting that Ripple’s price risks a crash to $1.80.

The MACD indicator supports this bearish argument around XRP price after it formed a sell signal when the MACD line fell below the signal line. It has also crossed over below the signal line as the MACD histogram bars turn red, which is a sign that the sell-side pressure is strong.

A similar outlook is also portrayed by the Directional Movement Indicator (DMI) as the positive DI tips south when the negative one tips north. This further confirms that the trend is bearish, making an 11% crash more likely to happen if support at the $2.08 price fails to hold.

For the XRP price to invalidate this bearish outlook, it first needs to overcome the resistance level that lies at $2.33. If the price can move above this resistance due to positive catalysts, such as the Ripple vs. SEC lawsuit that is nearing its end.

Whales Sell 200M Ripple Tokens

Per Santiment’s data, whales are aggressively selling XRP tokens, and this could have a bearish implication on price and be the trigger for the 10% price crash. The whale addresses holding between 100 million and one billion XRP tokens have reduced their holdings by 200 million, and with these tokens entering exchanges, it may fuel a crash.

If whales start selling more tokens, it may show reduced confidence in the XRP price performance, and Ripple’s token could begin inching lower. Moreover, with retail demand remaining low due to a lack of confidence in future performance, a fall below $2 remains likely to occur.

Therefore, the XRP price is facing a major hurdle in its recovery, and this is a lack of strong interest from whales as these addresses start selling. With a rising wedge forming on the four-hour chart, the price may crash by 10% in the near term to $1.85.