There is a lot of uncertainty in the cryptocurrency market right now, and many traders and investors are feeling confused. Amidst this volatility, XRP, the native token of Ripple Labs, is expected to see a price drop as sentiment among crypto enthusiasts turns bearish.
70 Million XRP Dump Onto ExchangesÂ
A well-known crypto expert recently shared on X (formerly Twitter) that crypto whales have sold over 70 million XRP tokens on exchanges in the past four trading days. This large-scale sell-off has caught the attention of many in the crypto community.
Market participants view these dumps as a bearish sign, potentially leading to a significant price decrease, which is currently evident in the XRP price.
Current Price MomentumÂ
Currently, the asset is trading around $2.97 and has seen a price drop of more than 4.45% in the last 24 hours. During the same period, its trading volume has remained steady, showing no major changes.
XRP Technical Analysis and Key LevelsÂ
According to expert technical analysis, XRP has been moving within a descending parallel channel on a daily timeframe. However, the price has formed a bearish engulfing candlestick pattern and seems to be on the decline.
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Based on recent price movements and historical trends, there is a strong likelihood that XRP could decrease by more than 8.5% to reach its support level at $2.75.
Despite the negative market sentiment, the altcoin has managed to stay above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that XRP is still in an upward trend.
Traders’ Bearish OutlookÂ
Given the bearish price action, traders are heavily favoring the downside, as shown by data from CoinGlass. Currently, $2.91 is a level where bulls have too many leveraged positions, holding $28 million worth of long positions. On the other hand, short sellers are over-leveraged at the $3.10 level, with $56.30 million worth of short positions.
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This data suggests that short sellers are dominating the asset and could trigger a liquidation of long positions if the price falls below the $2.91 level.
