Ripple Price Forecast: XRP at risk of a 50% drop as critical indicator screams buy

Ripple price is on the verge of a major breakdown if crucial support level fails to hold.
A key indicator has presented a sell signal on the 3-day chart.
The number of whales remains in a downtrend, which indicates they are not interested in XRP.

XRP had a wild run in the past month, experiencing a ton of volatility that started with an initial pump orchestrated by the Reddit group named WallStreetBets. The digital asset remains quite volatile and could be poised for a significant drop.

Ripple price on the verge of a 50% fall

On the 3-day chart, the TD Sequential indicator has presented a sell signal on February 21, which seems to have gotten a significant bearish continuation down to $0.45.

XRP/USD 3-day chart

The last sell signal was presented on November 2020, and Ripple price dropped by more than 70% within the next month. The 26-EMA at $0.415 is acting as a robust support level. If XRP bulls fail to hold this key level, Ripple price can swiftly fall towards $0.218.

XRP Holders Distribution

Additionally, the number of whales holding between 10,000,000 or more XRP coins has decreased in the past three weeks, despite Ripple price falling. It indicates that large holders are not interested in XRP even if the price is lower.

On the other hand, XRP bulls can still invalidate the sell signal by pushing Ripple price above the last high of $0.65. A rebound from the 26-EMA could drive the digital asset towards $0.75.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.