Ripple (XRP) seems weak as it consolidates around $2.1, especially with Bitcoin crashing from its ATH. Due to BTC’s steep correction and failure to recover, the outlook for altcoins looks bleak. Although Ripple rallied nearly 500% in the past few weeks, these five signs suggest XRP price could crash 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.
Due to BTC’s weakness, the crypto market outlook could trigger a crash that impacts even XRP.
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.
The 365-day MVRV indicator hints at massive unrealized profits, which could trigger a crash if these holders attempt to realize profits.
Whales have continued to offload their holdings for the past month.
Technicals suggest XRP price could trigger a 31% crash as it hovers inside a descending triangle.
General Crypto Market Weakness Affects XRP Price
Bitcoin’s 15% drop from ATH of $108,421 caused crypto markets to crumble. Top altcoins, including XRP, that were up massively have retraced most of their gains. Due to altcoins’ high correlation with Bitcoin, they tend to follow the path set by the leader. With BTC showing signs of a further decline, XRP price will also follow suit, potentially tagging the $1 level.
Decline in Daily Active Addresses & Network Growth
When the network’s growth and daily active addresses drop, it indicates that investors, both new and existing, are not interested in the token at the current price level. This often happens after an uptrend, where both the metrics tank, suggesting an exodus of investors and hints at a potential reversal of Ripple price to $1.
Ripple Long-Term Holders’ Massive Unrealized Gains
The 365-day MVRV for Ripple stands at 77%, showing that investors who purchased XRP in the past year at an average profit of 77%. During the yearly high, this number stood at 200%. High unrealized gains often become a source of selling pressure if investors decide to book profits. This is the third sign that hints XRP price could crash to $1 again.
XRP 365-day MVRV
Ripple Whales Sell XRP
Between November 29 and December 28, whales holding between 100 K and 1 M XRP offloaded 110 M tokens. This selloff could be another reason why XRP price has crashed 32% from the yearly high of $2.90. If this trend continues, XRP price could crash down to $1.
XRP Whales
XRP Price Analysis: A Crash to $1 Likely
XRP price has formed a descending triangle setup, which contains lower highs and equal lows, connected by trend lines. This setup often leads to bearish breakouts and forecasts a 31% crash to $1.34, obtained by measuring the triangle’s height and adding it to the base at $1.95.
For this setup to be successful, XRP price needs to break below the $1.95 support level, which is the triangle’s base. If bulls fail to stabilize Ripple at $1.34, it could trigger a further drop to $1.
XRP/USDT 4-hour chart
On the other hand, if Bitcoin reverses the bearish outlook, then XRP price could. In such a case, a recovery from $1.34 leading to a breakout above the triangle’s declining trend line will signal a bullish outlook. Such a development could lead to a revisit of $2.90 followed by $3.
The post 5 Warning Signs Hint XRP Price To Crash To $1 Soon appeared first on CoinGape.
