XRP Price Forecast: Whales Accumulate 190M Tokens Despite “Death Cross” Jitters

XRP price has been under bearish pressure since the start of June after forming a death cross signal. Despite this bearish crossover, whales are accumulating XRP, with 190 million tokens bought in just one week. Amid this nuanced outlook, how will XRP perform? Will the price fall below $2 or defy the bearish signal?

Will XRP Price Drop Below $2 After Death Cross?

The four-hour XRP price chart shows that a death cross first appeared on May 30, and since then, the 50-day SMA has sustained its downward slope. This shows surging sell-side pressure and the lack of a potential bullish reversal as buyers remain hesitant.

The last time XRP formed a death cross, which was on March 30, the price crashed by 23% within a week to a swing low of $1.67. A repeat of this trend could see the price of Ripple’s token dropping from the current price of $2.18 to $1.68.

The looming crash below $2 is also made likely by the appearance of an inverted cup and handle pattern, as CoinGape previously reported. This hints XRP price may drop to $1.71 despite a sentiment divergence. However, for such a drop to occur, XRP will have to first lose support at $2.06. If this support holds and the price makes a decisive close above the $2.20 resistance, it may invalidate the bearish outlook of the death cross.

The MACD line suggests that the bearish momentum could weaken as it formed a buy signal after converging with the signal line. If buyers react to this signal and the 50-day SMA halts its downtrend and starts reversing, it may also weaken the bearish momentum depicted by the death cross.

Nevertheless, XRP’s drop below $2 could also bode well for the token. This is per a recent CoinGape analysis, noting that XRP traders are likely to buy below $2 or enter long positions as they expect a rebound.

Whales Accumulate 190M Tokens Despite Death Cross Fears

XRP whales appear to be in an accumulation spree despite the price forming a death cross. Data from Santiment shows that in just one week, the addresses holding between 1 million and 10 million XRP tokens have increased their holdings from 6.08 billion to 6.27 billion. This means that the addresses bought 190 million tokens within one week.

The surging whale interest in XRP likely stems from growing optimism towards the Ripple vs. SEC case. Pro-XRP lawyer Bill Morgan notes that a major development in the case may be announced on June 16.

Meanwhile, Polymarket data shows increased odds of a spot XRP ETF approval. 88% of investors on the platform believe that the product will get approval before the end of the year.

Considering the bullish catalysts and the whale optimism, it is likely that XRP price rebounds and possibly avoids a crash below $2. However, the appearance of a death cross pattern on the four-hour chart shows that a decline below this support level remains likely.