Major red flags slam XRP price: Will bullish dream fade away?

XRP is down by 3.65% in the last 24 hours. The slip extends to a broader timeline, with more downs coming at 3.82% in the last 7 days and 19.78% in the last 30 days. Notably, this comes at a time when anticipation for the Spot XRP ETF was high following the approval of the Bitcoin ETF by the US SEC on January 10, 2024.

Now, analysts have identified red flags in the XRP flag, citing that they are not really optimistic about the XRP ETF, at least this year.

Major red flags emerge in XRP price trends

The token is exchanging hands at $0.4934 at the time of writing this article. The trend is worrisome because the price has yet to hit the mark of $0.6 after 30 days. Movements have been more or less below the margin of $0.55 since the closing of the market on January 22, 2024. More trends demonstrate red flags in XRP price trends.

XRP whale activities

XRP whales are reportedly on a selling or redistribution spree, with at least 29 million tokens dumped recently. It has been learned that there is a significant decrease in XRP reserves. Whales with tokens in the range of 100 million and 1 billion have brought down their shares. Those with more than 1 billion tokens have increased their holdings.

It is not yet known whether this results from selling activities or redistribution.

XRP market price showing bear flag setup

For starters, a bear flag setup is identified by forming an upward-sloping rectangle supported by parallel lines that go against the downtrend. The phase is resolved only when the price reaches the lowest or breaks the lowest mark on the graph.

Per stats, the RSA of XRP, which is the weekly relative strength index, is at ~40, depicting a neutral region and chances of falling in the times to come. Also, the 50-day EMA is expected to go below the 200-day EMA.

XRP sell-off risks are increasing

To take the 50-day EMA and 200-day EMA forward, the former will craft a death cross, something that traders identify as a sign of bearish sentiments. The last time the death cross was brought to light, the token value saw a decline of 65%. This dates back to December 2021.

Another element that highlights sell-off risks is the formation of the H&S pattern, which is the head and shoulder pattern. It starts with a peak, then sees a higher peak and a lower peak. All that happens on top of the support line, known as the neckline. The target, as per H&S, is $0.34 sometime in March or April this year.

Analysts are not optimistic about the spot XRP ETF

Amid the rise of bearish sentiments, it is only natural to come across headlines that say analysts are not bullish about the arrival of Spot XRP ETF. This contrasts with the attitudes that prevailed a few days after the SEC approved the Bitcoin ETF. Analysts now believe that no approval for the XRP ETF would hamper its price against BTC and ETH.

Both tokens are weakly trading at $42,153.38 and $2,267.83, in the same order, at the time of articulating this piece. XRP coin price prediction estimates that the token will touch $2.65 by the end of this year.

Millions of XRP disappear in mysterious Ripple transfer

While what happened to those tokens is not mysterious, it is unknown why they were transferred to another wallet. It is estimated that Ripple has transferred tokens worth $24.75 million to an unknown wallet. This goes back to January 30, 2024, and has been linked to a part of the routine operations that entails unlocking tokens from escrow every month.

Conclusion

Ripple vs. SEC has an additional negative impact on XRP’s reputation. The absence of an XRP Futures ETF in the United States bolsters it. Simply stated, many red flags are activating, driving down the price of XRP. XRP ETF has experienced a declining momentum and is currently focused on restoring its price trajectory.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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