• XRP is under selling pressure as large holders offload over 720M tokens.
• Technical indicators suggest a potential drop toward $2.40 or lower.
• Price sits on crucial support, with more downside risk if it breaks.

XRP’s recent uptrend is losing strength. A well-known signal, the Tom DeMark Sequential, appeared on the 4-hour chart just as XRP hit a local high. That was followed by an immediate drop in price. The signal often points to trend exhaustion, and this time was no different.

Crypto trader Ali flagged the warning in real time. His trade setup focused on shorting near $2.98, aiming for a move down to $2.48. He placed a stop at $3.18, citing weak demand around the $3 zone. His chart analysis showed the real support forming closer to $2.40.

That bearish setup gained momentum as whales stepped in. In the past 24 hours, over 720 million XRP have been sold. This kind of volume typically points to a lack of confidence from large holders and often leads to sharp price drops.

Also Read: XRP Price Correction Looms as Selling Momentum Builds

XRP Dips Below Key EMAs, Bears Eye $2.33 Support Zone

XRP is now priced at $2.84, slipping 4% in the last day. It broke below the 20-day EMA of $3.03, a sign that buyers are backing off. The 50-day EMA at $2.78 is next, and it’s being tested now.

Below that, the 100-day EMA at $2.57 and the 200-day EMA at $2.33 are the next important zones. If the price closes below $2.78, it could fall all the way to $2.33.

The Ichimoku Cloud also shows a risky setup. The price is now at the lower edge of the cloud, around $2.84–$2.78. If it breaks through, it would signal a shift in trend to bearish. The flat line at $2.96 is holding as short-term resistance.

The RSI is another concern. It has fallen to 43.71 from a previous high of 62.85. This shows that the momentum is slipping. The RSI is not in oversold territory yet, which means more room exists for a further slide.

MACD Confirms Breakdown, Eyes on $2.40 Zone

The MACD confirms the weakness. The MACD line has crossed below the signal line, with growing red bars on the histogram. That means sellers are in control for now. Volatility is moderate, sitting at 36.24. It’s down from recent peaks, hinting at a possible cooldown phase. But any sharp move could break that calm.

On-chain metrics add more weight to the bearish case. Accumulation trends show $2.80 as a temporary support, but strong demand is likely below $2.48. The MVRV ratio flashing a death cross supports the chance of a deeper correction. Unless XRP moves back above $3.00, sellers are likely to remain in charge. Traders are watching the $2.40–$2.20 range for a possible entry if the decline continues.

Also Read: XRP Reversal Incoming? Breakout Eyes Key Resistance at $3.65