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Massive sell-off by major XRP investors. Why?

The price of XRP has increased by over 300% in the last two months, trading at $2.10 on December 27. However, warning signals suggest that XRP/USD could erase at least 25% of those gains in the short term.

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XRP is close to breaking a descending triangle
The recent losses of XRP, which was trading at $2.20, are due to its movement within a descending triangle pattern—a bearish structure that typically signals further declines.
This pattern is characterized by a series of lower highs forming the descending trendline of the triangle, while the $2.10 level acts as horizontal support.

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A clear break below the support level of $2.10 could open the path for a deeper correction. The potential target for this decline is calculated by subtracting the height of the triangle from the breakout point, according to technical analysis rules.
In other words, the price of XRP could drop to around $1.64 by January 2025, representing a 25% decline from current price levels.

Whales are selling during the rise
Blockchain data further supports the bearish outlook, as whale address metrics show distribution sentiment.
Notably, the XRP holdings of the wealthiest investors—those with balances over 1 million tokens—have decreased by 180 million since the beginning of December.

Meanwhile, the holdings of addresses with balances of 100,000 XRP have decreased by 170 million. These declines coincide with a drop in the price of XRP by over 26% from its local peak of $2.90.

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Large-scale sales by whales can create downward pressure on prices as they increase the supply of tokens in circulation. Combined with the price drop, this suggests that selling is outpacing demand.

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XRP holdings on Binance are increasing
Furthermore, XRP holdings on Binance, the largest cryptocurrency exchange by volume, have been steadily rising since mid-December. This is typically a bearish signal, as it often precedes price corrections.

The increase in exchange holdings reinforces the narrative of profit-taking at local highs, which contributes to the current downward momentum of XRP.

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If this trend does not reverse, the price of XRP could face a 25% downside risk as exchange holdings rise and large holders continue to sell during price increases.

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