Ripple Price Forecast: XRP shows significant signs of a potential sell-off down to $0.40
- Ripple price could be on the verge of a significant sell-off according to a crucial indicator.
- XRP has experienced wild volatility because a Reddit group organized a pump on the digital asset.
- Concerns about the SEC lawsuit are still in the air and negatively affect XRP.
On January 30, Ripple price had a massive breakout jumping by 155% and quickly plummeted down to $0.36 in less than 10 hours. The pump was caused by a Reddit group named WallStreetBets which also caused a massive short squeeze on the stock of Gamestop.
Ripple price at risk of another significant sell-off
On the 9-hour chart, the TD Sequential indicator has presented a sell signal and it’s on the brink of doing the same on a shorter timeframe on the 2-hour chart. Validation of this call can drive Ripple price down to the 100-SMA at $0.40 on the 9-hour chart.
XRP Sell Signals
The most concerning bearish sign for XRP in the long-term is the significant decrease in the number of whales holding at least 10,000,000 coins. On December 25, 2020, this number was hovering all-time highs at 356 but quickly plummeted down to 300 currently.
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XRP Holders Distribution chart
On the other hand, XRP bulls have just defended a crucial support trendline on the 4-hour chart and aim for a rebound towards $0.54 which is the upper boundary of an ascending wedge pattern.
XRP/USD 4-hour chart
The breakout of the key resistance level at $0.544 can drive XRP price towards a high of $0.62. This 15% move is calculated by using the maximum height of the ascending wedge pattern.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
