- XRP has broken down an ascending triangle price action pattern and its $2.50 support.
- XRP traders were over-leveraged at $2.40 on the lower side and $2.55 on the upper side.
Ripple[XRP] appears to be shifting its trend from upside momentum to a downtrend amid ongoing market uncertainty.
At the time of writing, with a 5% price drop, the asset has breached its prolonged support and is poised for a massive price drop.
XRP’s technical analysis and price prediction
According to AMBCrypto’s technical analysis, XRP turned bearish on the four-hour timeframe after breaking down from an ascending triangle pattern.
This breakdown caused a breach of the crucial $2.50 support level. The breakdown of both horizontal support and the triangle price action partially confirms that XRP could experience a significant decline.
Source: TradingView
Based on recent price action, if the asset closes a four-hour candle below the $2.50 mark, there is a strong possibility of a 13% drop to the $2.10 level in the coming days.
Meanwhile, XRP’s Average Directional Index (ADX) was at 20, indicating weak strength, which could further support this bearish outlook.
Current price momentum
At press time, XRP was trading near $2.45, having dropped over 5% in the past 24 hours. However, during the same period, its trading volume surged by 70%.
This surge indicates increased participation from traders and investors compared to the previous day.
A rise in trading volume isn’t necessarily a bullish sign, as it reflects both bullish and bearish activity, including position liquidations, token accumulation, and token dumping.
On-chain metrics mixed sentiment
Looking at the current market sentiment, it appears that investors and long-term holders are accumulating XRP, as revealed by the on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow showed an outflow of over $13.65 million worth of XRP tokens in the past 24 hours.
This indicates potential accumulation that could drive upside momentum and buying pressure.
Source: Coinglass
However, the prevailing market sentiment suggests that this may not be enough to trigger a significant XRP rally.
XRP traders’ over-leveraged positions
Besides the bullish outlook from long-term holders, the major liquidation levels, at press time, were $2.40 on the lower side and $2.55 on the upper side.
Traders were over-leveraged at these levels, as revealed by Coinglass data.
Source: Coinglass
If market sentiment remains unchanged and the price drops below $2.40, nearly $35.50 million worth of long positions will be liquidated. Conversely, if sentiment shifts and the price rises to $2.55, over $40 million worth of short positions will be liquidated.
These on-chain metrics and technical analysis show that bears currently dominate the market. This dominance could push XRP lower in the coming days.
