Over the last week, the XRP market endured a dominantly bearish mood. During this time, the altcoin’s price declined by more than 5% amid general market struggles. A broader overview shows that XRP has remained range-bound between $1.29 and $1.55, with this range stretching back to February. However, recent technical developments on the daily chart pattern indicate an impending market sell-off to end this month-long consolidation and establish a deeper decline in this bear market. Related Reading: Analyst Highlights Ethereum ‘Kill Zone’ That Shows The Best Time To Buy XRP Break Below Symmetrical Triangle Tips Short-Term Loss In trading analysis, a symmetrical triangle is created when the price forms a series of lower highs (descending resistance line) and higher lows (ascending support line). These two trendlines converge, forming a triangle. This chart formation usually represents indecision and compression in the market, as buyers are stepping in earlier each time (higher lows) and sellers are stepping in sooner each time (lower highs). In an X post on May 23, Ali Martinez shares that XRP has broken out of a symmetrical triangle on its daily chart. The altcoin recently breached the rising trend line of this chart formation, which started in January. This means XRP is now below a key support level and is exposed to deeper downside targets. According to the seasoned analyst, an acceleration in selling pressure would likely pull XRP down to around $1.14, i.e., a 16.17% loss from current market prices. Related Reading: Dogecoin Mirrors Previous Mega Bull Trend — Is Another Parabolic Rally Next? XRP Market Glance – Whales Step Out Interestingly, the loss in XRP’s price and its latest bearish signal coincide with another concerning development. Martinez reports in a separate post that XRP whale activity is presently registering a major decline. In the last nine days, the number of large transactions (i.e., transactions over $1 million) has dropped from 157 to 67, representing a 57.3% loss. The analyst explains that such events usually mean that whales are stepping away as the market enters a compression phase expected to be marked by declining volatility. During this time, the current price range becomes accepted value as the market build support & resistance clarity. In addition, there would be an uptick in limit order activity, with liquidity deepening on both sides to eventually form a mature order book. However, compressions always result in expansion, the direction of which hinges on liquidity and whether these whales return as buyers or sellers. At the time of writing, XRP trades at $1.35 reflecting a gain of 1.1% in the last day. Meanwhile, the asset’s daily trading volume is up 4.23% and valued at $1.96 billion. Featured image from Pexels, chart from Tradingview
