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Whale Activity and XRP’s 300% Surge: Should Investors Be Cautious?
In the midst of a remarkable 300% surge in Ripple’s XRP over the past two months, it appears that certain warning signs are emerging that may signal a potential correction. According to recent on-chain data, whale selling pressure is increasing, leading to an influx of tokens flooding the market and subsequently contributing to price declines.
As of December 27, the price of XRP had skyrocketed to $2.10, leaving many investors wondering if this impressive rise can continue. However, the possibility of a 25% correction cannot be ruled out at present. This comes after the formation of a bearish technical pattern in the charts.
A descending triangle pattern has appeared on the chart, typically indicating further price drops. A breakdown from the $2.10 support level could potentially result in a decline down to approximately $1.64, resulting in a 25% loss for short-term investors.
As XRP’s price surged by more than three times its value over two months, it may be that this rapid growth is unsustainable. The sudden increase in whale selling pressure and the rising exchange reserves at Binance have raised concerns about potential downward pressure on prices in the near future.
In light of these factors, it would seem prudent for investors to exercise caution and re-evaluate their positions in XRP.
Source: cryptonewsland.com
