XRP has formed a classic bearish pattern on its two-day chart, and if confirmed, a price drop to $0.80 could be in the cards over the next few weeks.
XRP (XRP) may slide deeper as its bearish chart structure converges with renewed whale activity on Binance.
Key takeaways:
Bear pennant setup hints at 42% XRP price decline
XRP has been forming what appears to be a bear pennant setup on its two-day chart.
A bear pennant pattern forms when the price consolidates inside converging trendlines after a sharp drop, called the “flagpole.” It often resolves with another leg down, roughly matching the initial decline.
On XRP’s chart, the structure emerged after the steep sell-off toward the $1.12 zone. The price has since compressed into a tightening triangle, remaining below key moving averages, reflecting weakening momentum.
Related: 4 data points suggest XRP price bottomed at $1.12: Are bulls ready to take over?
A decisive breakdown beneath the pennant support may open the door to a move toward the $0.80 mark, about 42% below the current levels.
Analyst BitGuru noted the support at $1.22, saying that if the altcoin holds this level, “we could see a trend shift and slow recovery soon.”
As Cointelegraph reported, a break and close below $1.20 would confirm that the bears are in command. The XRP/USD pair may then tumble to $1.11 and subsequently to $1.
XRP whales transfer millions of tokens to Binance
On Saturday, more than 31 million XRP were transferred to Binance, marking the largest inflow to exchanges since Jan. 20, according to data resource CryptoQuant.
These inflows were primarily driven by activity from large holders, with these investors accounting for more than 88% of XRP transfers to Binance on Feb. 21.
The highest transfer was made by wallets holding more than 1 million XRP, comprising 14.5 million tokens. Entities with 100,000-1 million XRP sent more than 14.2 million XRP to Binance, while those holding 10,000-100,000 XRP transferred 2.9 million XRP. The other transfers were less than 100,000 XRP made by smaller wallets.
“Altogether, this represents a sudden potential sell-side pressure of nearly $45 million that warrants close monitoring,” CryptoQuant analyst Darkfost said in a QuickTake note on Monday, adding:
“Should this selling pressure persist, XRP may struggle to recover from its ongoing correction in the near term.”
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