#What potential tokens are you preparing to buy for the market bounce?

Glance at 4 Signs to Watch Out for from XRP Prices

In a recent development, XRP, a digital currency linked to Ripple, is facing a series of indicators hinting at a potential price drop in the coming weeks.

In this article we will discuss four key indicators, combining technical, fundamental and on-chain metrics, to provide a comprehensive overview of the current state of the XRP and its potential future trajectory.

4 Signs in XRP Price
Bear Flag Pattern
The first indicator that indicates a possible decline for the price of XRP is the formation of a bear flag pattern. This bearish continuation pattern is characterized by small upwardly sloping quadrilaterals formed by parallel lines against the ongoing downtrend.

On January 30, XRP was at risk at the lower trendline of its bear flag. A firm break below this trend line could trigger a significant decline, potentially reaching $0.24, representing a 55 percent drop from current levels in May or June.

At the moment, its weekly RSI indicator is in the range of the 40 mark, neutral territory indicating the scope of a possible further decline in the market.

Whale Selloff
Simultaneously, there is a large flow of crypto XRP to Bitstamp and other exchanges, as reported by Whale Alert. In particular, Ripple's transfer of $24.75 million XRP to an unknown wallet on Jan. 30 raised concerns.

This is in line with changes in the distribution of XRP holdings, indicating a decrease in reserves held by giants (100 million to 1 billion crypto) and an increase in ownership by entities that own more than 1 billion tokens, potentially crypto exchanges.

This hints at the possibility of sale or redistribution of XRP holdings by the whales.

Death Cross and Head and Shoulders Downward Breakout
The risk of selling XRP increases due to the presence of two bearish technical patterns that are interrelated on the shorter time frame.

First, a death cross lurks as the 50-day EMA XRP is likely to cross below the 200-day EMA. These traditional bearish signals have historically often preceded significant price declines.

Secondly, a worrying head and shoulders (H&S) pattern is forming on XRP daily chart, indicating a potential trend reversal. Applying the rules of technical analysis, the H&S pattern indicates a price target of around $0.34, down 30 percent from the current price level, in March or April.

No ETFs XRP Spot in Sight
Analysts expressed skepticism about the imminent launch of an Exchange-Traded Fund (ETF) XRP spot. The ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), coupled with the absence of ETFs XRP futures in the US, contributes to this pessimism.

Uncertainty around regulatory clarity and lawsuits are considered to be major obstacles that could hinder XRP demand compared to Bitcoin and Ethereum.

As XRP face a series of bearish signals from technical, fundamental and on-chain perspectives, investors and enthusiasts should prepare for the challenging period ahead. Let's watch. [st]

Source : Blockchain Media