XRP Price Faces $1.85 Drop as Whales Sell 560M Tokens in 2 Weeks

XRP price has not recorded any significant changes in its value for months now, despite defending $2 support level. This poor performance has led to whales selling their tokens, with 560 million leaving these large wallets in the last two weeks, increasing the likelihood of a drop to $1.85. XRP is trading at $2.19 today, July 1, with a 0.75% gain and a 122% increase in daily trading volumes.

XRP Price Crash Below $2 Looms As Bearish Wedge Pattern Emerges

Ripple’s price could be facing a decline below $2 as it continues to trade within an ascending wedge for more than a week, which is a sign that the market is currently filled with more sellers than buyers. As the price continues with this performance, support has formed at $2.17, and if XRP price drops below it, it may crash.

This pattern has also appeared at the same time that a sell signal has formed on the four-hour timeframe chart. The MACD indicator created this signal after the line dropped below the signal line. If history repeats itself, this crossover may cause the price to drop below the support level and confirm the bearish outlook.

If this altcoin drops below the $2.16 price, it may trigger a 15% crash to $1.85. Hitting this level will not only free XRP from months of trading in consolidation, but it could trigger panic selling from the traders who were holding, anticipating that the price may rebound. Moreover, the fact that Ripple price has held above $2 for months could mean that most traders are opening sell orders at this level, and if it slips below it, a crash may happen.

The bearish outlook seen above may be invalidated if XRP’s RSI can avoid dropping below 50 and starts rising, as this will confirm a bullish reversal. Such a rally may happen if there is a recovery across the crypto market because, as CoinGape reported, Bitcoin’s rally may drive XRP price gains.

Whales Dump 560M Tokens in 2 Weeks

Meanwhile, whales appear to be selling Ripple, and this could be the trigger that causes the price to drop. According to Santiment data, the large addresses that are holding between 100 million and a billion coins have reduced their XRP balances from 8.36 billion two weeks ago to the current 7.8 billion.

The above data shows that within two weeks, these large addresses have sold more than 560 million Ripple coins, and this could explain the recent underperformance in XRP price. The delayed conclusion in the Ripple vs. SEC lawsuit could be one of the reasons why whales are dumping their coins.

At the same time, a lot of coins that were previously remaining dormant appear to be on the move after a notable spike in the Age Consumed metric to the highest level in three weeks. As these tokens flood the market when the demand is notably low, the XRP price may decline.

To conclude, XRP appears to be facing a steep decline if it loses crucial support at $2.71. If this happens, the price of XRP may crash to $1.85, with such a dip being more likely to happen with the recent selling activity by whales.