Can XRP Sustain Epic $2 with Big Moves and Increasing Selling Pressure?

• XRP faces the risk of falling below the critical support level of $2 due to the developing downtrend, creating significant selling pressure.

• The latest data shows that XRP whales have sold approximately 350 million tokens, removing $746 million in value from the market, adding to market volatility.

• With XRP trading below the 20-day exponential moving average (EMA), prices could fall to $1.88 or even $1.34 if the current support level fails.

Ripple’s XRP is falling in price towards critical support levels and struggling with growing bearish sentiment as whales unload millions of tokens.

XRP faces increasing selling pressure amid whale movement

After a dramatic rise of almost 500% between November 6th and December 3rd, the price of XRP experienced a significant decline, hitting a multi-year high of $2.90 in the process. As of now, XRP is stuck in a descending triangle formation, indicating increasing selling pressure and bearish sentiment. This technical structure complicates bulls’ efforts to maintain the $2 support level and raises concerns about a possible price decline.

The descending triangle pattern is characterized by lower peaks and a flat support level, often heralding a bearish breakout. Due to the key role of support at $2, bulls will likely have difficulty defending this important price point. Looking deeper into the whale movement, a significant selloff is adding to this selling pressure.

According to information obtained from Santimento, large investors controlling between 10,000,000 and 100,000,000 XRP have reduced the amount of XRP in their hands by 350 million tokens since December 4th. This sale of over $746 million seems to have added to the downtrend in the price of XRP.

The decline in whale accumulation is a concern because these large investors often maintain significant balances with the investments they hold to maintain market stability. Recent selling behaviors can create panic among retail investors and increase market volatility.

XRP Futures Assessment: Will $2 Support Remain Strong?

Current indicators show that XRP is trading below its 20-day exponential moving average (EMA). This level usually indicates a bearish situation. This suggests that the $2 support level is at risk and selling pressure is increasing.

If the downtrend continues, XRP could break through this critical support and price levels could fall to $1.88. If this level is not sustained, the price could fall to $1.34. A drop below $2 suggests that the market could be headed for a longer-term bearish situation.

On the other hand, a change in market sentiment could change the course of XRP. If XRP gains bullish momentum and manages to break through the 20-day EMA and approach the $2.18 resistance, it could cause the price to return to recent highs around $2.90.

Conclusion

In short, XRP is moving in a volatile environment due to significant selling by large investors and technical difficulties. A breach of the $2 support could signal further losses and put XRP at risk of retesting key lower support levels. Investors need to be cautious and closely monitor market sentiment as external factors and internal developments will continue to shape the future course of XRP.