Technical Charts Signal XRP Could Plunge Under $1 Amid $650M Exchange Deposit Wave
XRP's daily chart reveals a symmetrical triangle pattern breakdown that could trigger an additional 30% price decline to fresh lows while exchange supply continues expanding.
XRP (XRP) confronted the possibility of an extended decline beneath the $1 mark as bearish chart patterns aligned with heightened token deposits flowing into cryptocurrency exchanges.
Key takeaways:
- The breakdown of a symmetrical triangle pattern suggests XRP price could target $0.95.
- More than 472 million XRP tokens valued at approximately $652 million moved to exchanges, indicating potential additional selling pressure.
Overhead resistance barrier confronts XRP at $1.42 level
Between Saturday and Sunday, XRP experienced a 13% price surge reaching $1.43 before encountering strong resistance between $1.39 and $1.43, leading to a pullback toward its present trading level of $1.34.
Analysis of the cost-basis distribution heatmap reveals a significant supply concentration exists within this price zone, where approximately 1.48 billion XRP tokens were purchased during the previous 30 days. This concentration represents a formidable resistance barrier for XRP, constraining its potential for upward movement.
Examining the daily XRP price chart reveals this zone aligns with the symmetrical triangle's upper trend line, a formation that has restricted price advances since Feb. 1.
Currently, the XRP/USD trading pair sits beneath the triangle's lower trend line positioned at $1.35. Should a daily candle close beneath this critical threshold, it would confirm the symmetrical triangle pattern, potentially opening the door for a more substantial price correction.
By calculating the triangle's height and projecting it from the breakout point, the measured downside target for this chart formation comes to $0.95, representing approximately 29% beneath current trading levels.
According to previous Cointelegraph coverage, a decisive break and close beneath the falling channel's lower boundary at $1.20 would threaten the Feb. 6 low of $1.11. Following such a breakdown, XRP could potentially descend toward the psychologically important $1 support zone.
Market analyst BitGuru provided commentary regarding the support zone between $1.20-$1.22, stating:
"If this base holds and buyers step in, a rebound toward $1.80–$2.20 could happen quickly, signaling the start of a recovery move."
Additionally, the two-day timeframe chart suggests the possibility of a decline toward $0.80, potentially driven by large-holder selling activity.
Exchange reserves of XRP continue climbing
During the past seven days, cryptocurrency holders transferred more than 472 million XRP tokens, representing approximately $652 million in value, to Binance, constituting the most significant exchange inflow recorded in February, based on information from data analytics platform CryptoQuant.
When token holders move their assets to exchanges, this movement frequently indicates potential intent to liquidate positions or at minimum to place liquidity in proximity to active trading venues.
"Such inflows typically reflect a more defensive posture from investors holding XRP," noted CryptoQuant analyst Darkfost in a QuickTake analysis published Monday, further elaborating:
"When the amount of flows like this are recorded, they can create the conditions for a sudden wave of selling pressure capable of impacting price action in the short term."
Consequently, the total XRP balance held on Binance has expanded to 2.73 billion tokens, up from 2.55 billion during mid-February. This growth translates to an overall increase of roughly 180 million tokens (+7%) in fewer than three weeks.
Rising XRP inventory levels on cryptocurrency exchanges represent a traditionally bearish market indicator that has the potential to exceed demand levels, thereby amplifying downward price pressure.