- XRP faces a potential 20% drop as a symmetrical triangle pattern signals a breakdown.
- U.S. crypto strategy excludes XRP, contributing to a 10% price decline.
- Whale holdings drop from 94.21B to 90.21B XRP, indicating distribution
Technical indications and market fundamentals are putting more and more pressure on XRP, pointing to a possible 20% price drop. As of March 8, significant market factors and historical patterns point to the potential for an impending drop.
Symmetrical Triangle Pattern Indicates a Potential Drop
XRP/USD is presently generating a symmetrical triangle formation on the weekly chart, indicating a struggle between buyers and sellers. While some consider symmetrical triangles to be bullish continuation patterns, they frequently break out in either direction based on momentum.
Historical information indicates that comparable patterns have resulted in considerable price drops in the cryptocurrency market. A significant instance is Ethereum’s symmetrical triangle breakdown in 2018, leading to an 80% decrease. If XRP adheres to a comparable trend, its downside target would be roughly $1.46, in line with its 50-week exponential moving average.
Market Sentiment Changes Following White House Cryptocurrency Summit
XRP price drop occurred after the White House Crypto Summit on March 7. Early excitement regarding XRP’s possible addition to the U.S. government’s strategic digital asset portfolio rapidly faded once officials made it clear that cryptocurrencies like Ethereum, Solana, Cardano, and XRP were cited merely as examples rather than actual choices.
There is no verified proof that the U.S. government possesses XRP, and Trump’s overall digital asset strategy does not entail new acquisitions. This disclosure led to a 10% decrease in XRP’s value. At the same time, Bitcoin has received considerable backing from the Trump administration, with the U.S. government allegedly possessing $17.7 billion in BTC.
The XRP/BTC trading pair is presently consolidating in a historical distribution area while staying above the 200-2W EMA, set at around 2,459 satoshis. A drop beneath this threshold might propel XRP/BTC to the 50-2W EMA at 1,700 satoshis, potentially intensifying XRP/USD’s downturn.
Rising Trading Volume Indicates Negative Market Conditions
Concerns regarding a potential distribution phase have been raised by the recent unusual spike in XRP’s trading volume. Analyst insights suggest that major investors could begin offloading their assets to retail investors after XRP’s 600% surge from November 2024 to January 2025.
Comparable trends were noted in 2021, as XRP’s trading volume rose prior to facing a lengthy drop. Should history recur, XRP might encounter another drop, further emphasizing the possible breakdown indicated by the symmetrical triangle pattern.
Moreover, the decreasing assets of XRP whales suggest additional distribution. In the last year, whale holdings decreased from 94.21 billion to 90.21 billion XRP, undoing the gains made after the election. Major investors usually possess strategic insights, and their selling actions frequently impact the wider market.
XRP encounters considerable downside risks owing to negative technical signals and changing market sentiment. The symmetrical triangle formation, decreasing whale holdings, and the U.S. government’s cryptocurrency strategy all play a role in increasing the likelihood of a price decline. As market trends evolve, investors continue to be wary of XRP’s near-term path.
