Key Notes
- XRP price faces strong resistance at $2.95, with key supports at $2.81 and $2.72, losing which can trigger a crash to $2.
- Whale deposits to Binance have surged 7x since August 16, with historical patterns suggesting further price declines.
- Despite the Ripple lawsuit settlement, XRP appears to be in the strong grip of the bears.
Ripple’s native crypto XRP XRP $2.90 24h volatility: 1.1% Market cap: $172.43 B Vol. 24h: $4.69 B has been trading under pressure after losing crucial support at $3.0 earlier this week.
The XRP price is forming a death cross while whale dumping increases, which has dampened market sentiment around altcoins.
XRP Price Forms a Death-Cross Pattern
The XRP price chart shows a death cross pattern, where the short-term 50 EMA falls below the long-term 200 EMA, signaling a trend shift.
This is the third death-cross formation for XRP this month in August. During the previous formations, XRP price corrected from $3.12 to $2.93 on August 15, and similarly, it tanked from $3.03 to $2.93 during the death-cross formation on August 18.
XRP price chart showing a death cross formation on August 21. | Source: TradingView
The XRP price is facing persistent resistance around the $2.95 Fibonacci level on the daily chart. The token briefly retested this zone but failed to hold it as support.
The key support to watch is at $2.81, a level that has historically triggered strong reversals.
A breakdown below this point could open the door to further downside toward $2.72, the last major support before a deeper XRP correction down to $2.
XRP Whales on a Selling Spree
Amid the recent profit-taking, XRP whale deposits to exchanges have been on the rise.
According to the latest on-chain data, whale inflows to Binance are rising again after remaining subdued since August 13, when inflows peaked at around 29,805 XRP, followed by a price drop from $3.27 to $3.08.
As of August 21, inflows rose to 6,293 XRP, a sevenfold increase from the local low of 900 tokens on August 16.
Historically, similar spikes have preceded price declines, including a July 30 spike that saw XRP fall from $3.09 to $2.76, and an August 3 spike that pushed prices from $3.07 to $2.96 in subsequent days.
XRP’s Whale to Exchange Flow is on the rise, indicating increased activity that could affect price. | Source: CryptoQuant
If current inflows surpass the August 13 peak, it would mark the first higher high in whale activity during this downtrend. This would potentially trigger more aggressive selling and add short-term pressure on prices.
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