Ripple Price Prediction: Bears Look To Drop XRP Below $0.40
Daily Ripple XRP Technical Analysis
- Ripple price has been repeatedly rejected at the $0.50 level over the last three days.
- XRP has charted the death cross in the 4-hour chart.
After failing at the $0.50 level over the last three days, the Ripple price got wholly taken over by the sellers during the previous 48 hours. XRP dropped to $0.406 so far today as the bears look to break below the $0.40 psychological level.
Ripple Price Charts Death Cross Pattern
Looking at the daily chart, the Litecoin price has failed continuously at the $0.50 resistance barrier. The 200-day SMA has crossed over the 50-day SMA to chart the death cross pattern. This is a very negative sign which could trigger a pull-down to the 20-day SMA ($0.34).
Image: XRP/USD daily
The 4-hour Litecoin price chart shows three negative signs:
- The 20-bar and 50-bar SMAs have flipped from support to resistance.
- The MACD indicates increasing bearish momentum.
- The parabolic SAR has reversed from bullish to bearish.
Image: XRP/USD 4-hour
Q4 2020 OTC Sales For Ripple Has Doubled
Ripple has recently published its quarterly XRP markets report for Q4 2020. An important highlight from the report is that Ripple doubled its OTC sales of XRP to market participants to sustain XRP liquidity in the quarter.
Ripple’s net XRP sales doubled in Q3 2020, recording $76.27 million compared to $35.84 million in the previous quarter. As per the report, Ripple made these sales and leases to provide a few Ripple partners and members of RippleNet with XRP liquidity. This would help them improve their ODL operations.
The report also mentioned that after the US Securities and Exchange Commission (SEC) announced its lawsuit against Ripple and two of its executives, multiple platforms started taking some restrictive measures against XRP. Some of these platforms include Bitstamp, Coinbase, Kraken, and Grayscale, which shut down its Grayscale XRP Trust. However, Coinbase customers can still use their XRP wallets to store the coin or withdraw it to other platforms or wallets.
Every first day of the month, Ripple releases one billion XRP tokens from its escrow wallet to use part of that money for sales or covering its operational expenses. However, around 80% of that is usually locked back afterward. In Q4 2020, according to the report, Ripple returned 2.6 billion XRP and “subsequently put into new escrow contracts.”
In Q4 2020, three billion XRP were released out of escrow (one billion each month) in line with prior quarters. In total across the quarter, 2.6 billion XRP were returned and subsequently put into new escrow contracts.
Crypto Whales Are Moving Millions in XRP
Large investors appear to be transferring XRP worth millions of dollars as online search interest in the digital asset surges. Whale Alert, a blockchain monitoring tool, recently tweeted that high-stakes crypto whales have moved a total of 119,723,157 XRP (worth over $47.8 million) in seven transactions recently.
One of the biggest transactions involved the shifting of 27,653,765 XRP (worth $10.6 million) from crypto exchange Kraken to an anonymous wallet. In a different transaction, a whale moved 27,143,113 XRP. Three transactions relocated XRP from anonymous wallets to a crypto exchange while two other transfers moved XRP from crypto exchanges to unknown wallets.
The XRP whale activity comes at a time when interest in the crypto asset explodes to a new all-time high. Google Trends has revealed surging interest in the search term “XRP” over the last two weeks from a low of 26 to an estimated 100, exceeding the previous high of 76 (in December 2017).
A few countries with the most XRP searches are Slovenia, Ireland, Australia, the Netherlands and Singapore. Although XRP is an underperforming asset when compared to other cryptocurrencies, it has surged over 48% in the last week, according to CoinMarketCap.
Ripple Price Is Expected To Reach These Levels
Overall, the Ripple price will likely drop further, and the next viable support is at the 20-day SMA ($0.34). The bulls will have to fight hard to prevent a further drop.