XRP Faces Potential 16% Drop as Whales Retreat

XRP has been caught in a bearish spiral lately, with its price falling over 5% in the past week amid the broader market's struggles. This decline comes as the cryptocurrency breaks away from the $1.29 to $1.55 range that's held since February. Such a shift suggests that the market's month-long consolidation phase might be concluding, with potential for further decline on the horizon.

Analysts have noted the formation of a symmetrical triangle on XRP's daily chart, a pattern indicative of market indecision. Buyers and sellers have been in a tug-of-war, creating a series of lower highs and higher lows. Recently, however, XRP has slipped below the rising trendline of this triangle, breaching a key support level. The effect is a flurry of selling activity that could send prices down to around $1.14, marking a 16.17% drop from current values.

Adding to the market's anxiety, there's been a significant decline in large transactions, with whale activity dwindling by 57.3% in just nine days. This reduction in transactions over $1 million suggests that larger players are stepping back, likely due to the current market compression phase. When whales retreat, the market can enter periods of reduced volatility, but these phases often prelude significant price movements. The question now is whether these whales will return as buyers or sellers in the coming days.

At present, XRP trades at $1.35, showing a slight 1.1% gain in the last day. Still, the uptick in trading volume by 4.23% to $1.96 billion hints at brewing activity. The crypto world is on edge, watching closely to see where this period of compression will lead. Will XRP find support, or is a downturn imminent?

So, keep an eye on the whales. Their next move could spell a new chapter for XRP's price trajectory.