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Ripple XRP at Risk of Huge Drop, Bulls Have Plenty of Work to Do

XRP had a wild month. It experienced a ton of volatility because of the sudden price pumps orchestrated by the WallStreetBets subreddit and the developments with the lawsuit filed by the United States Securities Exchange Commission (US SEC). 

The digital asset has been going up and down in the past few days and still remains quite volatile. However, the number of whales are at a downtrend even at the lower points of the coin’s price, which may indicate that larger investors are not interested in the coin at this time.

XRP is at risk as bulls attempt to save it

Caption: XRP is at risk as bulls attempt to save it

Moreover, on the 3-day chart for XRP, the TD sequential indicator presented a sell signal last week as the coin goes through a significant bearish run continuing down to $0.45. The last sell signal for the coin was seen in November 2020, and its price dropped by more than 70% within the month. 

The number of whales who hold over 10 million coins has decreased in the last month. The number of whales did not increase even as the coin reaches new lows for the month of February. Regardless, the bulls still look at a 50% mean revision of the daily candle.

The XRP bulls are stepping from the post-Reverse Bank induced lows as the pound continues to be the best performing G7 currency in 2021. The XRP’s daily chart’s bearish impulse has also peaked, and the bulls are correcting this move.

The chart shows that there is a confluence of the old support structure for the coin that meets the 50% mean reversion of the impulse, which is the current target.

Regardless, the bulls have plenty of work ahead of them, and a slow and steady upwards grind will be necessary to turn the charts bullish again before the coin can recover its previous market capitalization.

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Jamie West

Jamie is an XRP veteran & keeps his finger on the pulse when it comes to all things crypto.

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