5 Warning Signs Hint XRP Price To Crash To $1 Soon

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As a seasoned crypto investor with over five years under my belt, I’ve seen enough market cycles to know that the current state of XRP is cause for concern. The recent surge in price has been impressive, but the signs of potential trouble are hard to ignore.

It appears that Ripple (XRP) is experiencing a downturn, holding steady at approximately $2.1. This is more pronounced given Bitcoin‘s significant drop from its all-time high. The recent steep correction and unsuccessful recovery of Bitcoin has cast a shadow over the crypto market as a whole. Despite XRP’s impressive 500% surge in the past few weeks, several indicators hint that the XRP price might plummet to $1 soon.

5 Sell Signals That Suggest XRP Price Could Crash to $1

Let’s explore five sell signals hinting at a drop in XRP price to $1.

  1. Due to BTC’s weakness, the crypto market outlook could trigger a crash that impacts even XRP.
  2. A plummet in XRP network activity and daily active addresses suggests that investors are not interested in the remittance token. This drop in investor activity could lead to a significant correction.
  3. The 365-day MVRV indicator hints at massive unrealized profits, which could trigger a crash if these holders attempt to realize profits.
  4. Whales have continued to offload their holdings for the past month.
  5. Technicals suggest XRP price could trigger a 31% crash as it hovers inside a descending triangle.

General Crypto Market Weakness Affects XRP Price

The significant 15% decrease in Bitcoin from its all-time high ($108,421) has led to turbulence across crypto markets. Notable altcoins such as XRP, which had seen substantial growth, have largely reversed their gains. Since altcoins closely mirror Bitcoin’s movements, they tend to replicate the leader’s trajectory. Given Bitcoin’s potential for continued descent, it’s likely that XRP will follow suit, possibly dipping down to $1 or even lower.

Decline in Daily Active Addresses & Network Growth 

If the expansion of the network and the number of daily active addresses decreases, this usually means that investors, whether new or long-term ones, are not keen on the token at its current value. This situation typically arises following an upward trend, when both metrics significantly drop, signaling a possible mass departure of investors and potentially foreshadowing a shift in Ripple’s price back to $1.

Ripple Long-Term Holders’ Massive Unrealized Gains

In simple terms, the Multi-Vintage Risk-Adjusted (MVRV) metric for Ripple (XRP), which measures the average profit made by investors who bought XRP in the last 365 days, is currently at 77%. This indicates that most investors who purchased XRP over the past year are sitting on a profit of around 77%. During the yearly peak, this figure was as high as 200%, meaning profits were even greater then. If these investors choose to cash out their gains (due to high unrealized profits), it could potentially put selling pressure on XRP, possibly causing its price to drop back down to $1 – a third indication suggesting such a trend might occur.

Ripple Whales Sell XRP

From November 29th up until December 28th, whales with a holding of 100,000 to 1,000,000 XRP sold off approximately 110 million tokens. This massive sale might be one of the factors contributing to the 32% drop in XRP price from its yearly peak of $2.90. If this selling pressure persists, the XRP price may plummet further to around $1.

XRP Price Analysis: A Crash to $1 Likely

The pattern of XRP’s price movement resembles a descending triangle, characterized by successive lower highs and equal lows joined by trend lines. This configuration typically results in downward breakouts, predicting a potential drop of 31% to around $1.34. This forecast is derived by measuring the height of the triangle and adding it to the base price of $1.95.

To ensure the success of this setup, it’s crucial that the price of XRP falls below the $1.95 resistance point, which serves as the foundation of the triangle. If the bulls are unable to keep Ripple from falling to $1.34, it might lead to a continued decline, potentially reaching $1.

If Bitcoin shows signs of a bullish trend instead of the current bearish one, then the price of XRP might also increase. A rise above $1.34 and breaking through the triangle’s downtrend line would suggest a positive outlook. This could potentially lead us back to $2.90 and even towards $3.

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2024-12-28 11:38