XRP Price in Danger of a Major Drop if Support Levels Fail to Hold
Ripple XRP’s price is on the verge of a significant breakdown if it continues to fail its hold of crucial support levels. A key indicator to sell has also appeared on the 3-day chart of the crypto token. Moreover, the number of whales transacting using XRP is on the downtrend, which may mean that they are not interested in the digital asset at this time.
The past wild months have been wild for the XRP token. It has experienced tons of volatility after the lawsuit filed against Ripple and two of its top executive on December 2020 by the US Securities and Exchange Commission. This was added to by the initial pump orchestrated by the subreddit named WallStreetBets at the start of February this year. The digital asset’s volatility remains and may be gearing up to a significant drop.
Caption: Ripple XRP’s price is in danger of a 50% drop.
On the 3-day chart of XRP, the TD Sequential Indicator showed a sell signal on February 21, and the bearish effects of the signal have continued since. The crypto coin is now trading at only $0.45. The last sell signal for the token was seen in November 2020, and its price dropped by more than 79% in just 30 days.
Regardless, the 26-EMA at $0.415 is proving to be a robust support level for the token. However, if XRP bulls fail to hold on to this key level, the price of Ripple XRP will swiftly fall towards $0.218.
It should be noted that the number of XRP whales who hold over 10 million or more coins has decreased in the past three weeks, even as prices fall. This indicates that the large investors are not interested in the token at this time, even if the prices are lower.
On the other hand, if XRP bulls can invalidate the sell signal and push the price past the last high of $0.65, a rebound from the 26-EMA resistance level could drive the coin to an upswing towards $0.75.