XRP price rose by 3% today, Nov. 28, reaching its highest level in over two weeks as the crypto market rally continued. Still, the coin could suffer a sharp reversal as it formed a series of lower lows and lower highs and the risky death cross pattern amid whale selling.
XRP Price Has Formed an Alarming Chart Pattern
The daily chart reveals that XRP price has moved into a bull market after soaring by over 22% from its lowest level this month.
However, a closer look at this chart shows that the coin has formed a series of lower highs since peaking in July this year. Some of these levels were its highest levels in August, September, October, and November.
Worse, the coin has crashed below the Supertrend indicator, which is one of the most common bearish continuation patterns in technical analysis. A bullish breakout is often confirmed when this indicator turns green.
Meanwhile, the 50-day and 200-day Exponential Moving Averages (EMA) formed a death cross pattern on November 6. This pattern formed as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other.
Additionally, XRP price has formed a descending channel, meaning that it is in a downward trajectory.
Therefore, the most likely XRP price forecast is bearish, with the next key point to watch being the psychological level at $2. A drop below the lower side of the descending channel will point to more downside.
On the other hand, a complete Ripple price recovery will be confirmed if it moves above the 50-day and 200-day moving averages and the upper side of the channel. Such a move will point to more gains, potentially to the all-time high of $3.65.
XRP Price chartWhales are Dumping Ripple Tokens Despite Crucial News
The weak technicals likely explains why whale investors are offloading their positions. Data shows that these investors dumped over 460 million tokens in the last four days.
XRP whales are sellingAt the current price, the 460 million tokens are worth over $1 billion, which is a significant number. Their selling is happening a few weeks after Chris Larsen, a Ripple co-founder, offloaded tokens worth over $700 million, a sign of profit-taking.
XRP whales are selling the recent ETF approval news. The SEC has already approved several funds from companies like Canary, Bitwise, Grayscale, and Franklin Templeton. It is common for investors to sell an asset after a major announcement.
Data compiled by SoSoValue shows that these ETFs have now accumulated over $643 million in inflow, with Canary holding $336 million in assets.
Whales are also selling the Ripple USD growth news. On Thursday, RLUSD received an approval in Abu Dhabi, which helped to push its market capitalization to over $1.2 billion. This growth makes it one of the biggest stablecoins in the crypto industry, a trend that will continue accelerating.
Source: https://coingape.com/markets/xrp-price-forms-alarming-death-cross-amid-intense-whale-dumping/
