XRP risks falling to $0.98 as large holders appear to be reducing their exposure, raising the prospect of a deeper correction if the cryptocurrency loses critical support.
The warning comes as XRP struggles to reclaim $1.30. As of press time, the asset was trading at $1.29, up 0.20% over the past 24 hours.
XRP is trading below its 50-day simple moving average (SMA) of $1.40 and only marginally above its 200-day SMA of $1.28, signaling weak price momentum.
Its 14-day relative strength index (RSI) stands at 40.20, below the neutral 50 mark but above the oversold threshold of 30. The token recorded 13 positive days out of the past 30, or 43%, while volatility stands at 6.01%.
What’s next for XRP
Now, in an October 27 X post, cryptocurrency analyst Ali Martinez highlighted declining whale holdings and rising exchange balances.
He identified $1.25 to $1.26 as the critical support zone, with a breakdown potentially exposing XRP to $1.11 before a further decline to $0.98.
Wallets holding between 10 million and 100 million XRP fell from 351 to 339 over several weeks, while exchange balances increased by approximately 50 million tokens to 11.05 billion.
The shift raises concerns about potential selling pressure, although higher exchange balances do not necessarily mean the tokens will be sold.
Martinez also highlighted a buy signal on XRP’s three-day chart, offering a potential counterpoint to the bearish outlook.
XRP’s three-day chart shows the token rebounding 71.88% from its August low near $0.92 to around $1.60 before reversing lower.
It has since retreated to $1.29, struggling to sustain a recovery as it approaches the critical $1.25 to $1.26 support zone.
XRP price targets to look out for
A decisive break below this level could push XRP to $1.11 and eventually $0.98, while holding support could set up another rebound.
The TD Sequential indicator has flashed a buy signal on the three-day chart. The three previous comparable signals preceded rebounds of 31.26%, 24.38% and 18.65%, according to the analyst.
However, these historical rebounds do not guarantee a repeat. XRP’s immediate direction will depend on whether buyers defend support or continued selling pressure pushes the token toward the lower price targets. At the same time, the direction of the broader cryptocurrency market.
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