XRP price defends $2 support as whales dump 150M tokens in 5 days, testing market strength amid broader bearish pressure.
Despite the adverse headwinds affecting the broader crypto market, the XRP price has defended the $2 psychological support level since April.
As of press time, XRP is trading at $2.14, even though the crypto market experienced a loss of over $1 billion due to liquidations on June 13.
Nevertheless, the probability of XRP maintaining its level above this price may be diminished by a bearish pattern on the 4-hour timeframe chart and the whale distribution.
XRP Price May Decline Below $2 In Bearish Pattern
The four-hour XRP price chart has developed a rounding top pattern, a standard indicator that a trend is on the brink of an adverse shift.
Ripple’s native token had already breached the neckline support of this pattern following the rapid decline caused by the widespread crypto market collapse.
The bearish rounding top pattern’s depth indicates that XRP may experience an additional 9% decline after violating the $2.12 support level.
If this occurs, XRP may plummet from $2 to $1.93.
The price of this altcoin will reach its lowest point in over two months if it falls to this level.
The MACD indicator bolsters the bearish technical outlook, as buyers remain on the margins, despite Ripple CEO Brad Garlinghouse’s optimism regarding the XRP Ledger’s potential to capture SWIFT’s market share.
The momentum remains adverse, as evidenced by the negative histogram bars and the MACD line’s descent into the negative region.
The intensity of the downward trend in the price of XRP is also confirmed by the downward-sloping on-balance volume (OBV) indicator.
The decline indicates that selling volumes exceed purchasing volumes, typically indicating bearish pressure and market distribution.
This also shows that consumers lack conviction.
The bearish prognosis depicted by the rounding top may be rendered invalid if the XRP price resumes its upward trajectory and reaches the peak of this pattern at $2.33.
CoinGape has reported that Ripple’s price may recover before the SEC’s decision on a spot ETF.
Whales Are Selling 150 Million Tokens
Whale selling is another potential contributor to the XRP price plummeting below the $2 psychological support level.
The Sentiment data demonstrates the distribution behavior of addresses that possess between 10 million and 100 million coins.
The holdings of these addresses have decreased from 7.64 billion to 7.49 billion over the past five days, indicating that they have sold 150 million coins.
Despite the ongoing declines, these addresses have not been inclined to accumulate Ripple tokens, as evidenced by the chart above.
Their holdings have plummeted to their lowest level since late April, indicating they have been in an active distribution phase.
In summary, the XRP price is experiencing bearish headwinds due to the broader crypto market collapse, which has caused it to fall below the $2.12 support level.
This decline verified a bearish breakdown from a rounding top pattern, suggesting a 9% decline to $1.93 may be imminent.
The bearish outlook is further exacerbated by the 150 million Ripple tokens that whales have sold in the past 24 hours.