XRP Faces Heavy Selling Pressure After Breaking Key Support

• XRP has broken below key neckline support, confirming a head and shoulders breakdown and strengthening the bearish outlook.
• Over 370 million XRP have been sold by whales in the past 96 hours, increasing selling pressure and reinforcing the downtrend.
• Technical indicators, including MACD and DMI, confirm strong bearish momentum, with XRP struggling to reclaim lost support levels.

XRP is in an uncertain situation as bearish momentum keeps rising, pushing down prices. The big head and shoulders breakdown, along with big whale sell-offs, have imposed great pressure.

Technicals Analysis and Market Indication

Crypto analysts explain that XRP broke down below a critical support neckline, confirming a downward trend. Prominent trader Steph_iscrypto identified the head and shoulders pattern, stating that XRP must breach above $2.40 in a bid to negate the bearish pattern. In another report, Crypto veteran ali_charts identified that whales have dumped over 370 million of XRP in the last 96 hours, which is fueling selling momentum.

The connection between these observations is apparent, since whale selling is part of what dissolved the identified head and shoulders pattern by Steph_iscrypto. With a great amount of selling momentum suppressing the market, its current pattern is now more powerful, making it difficult for XRP to retest lost support levels. This is a signal of overwhelming bearish sentiment in the market, and its movements rely on subsequent buying.

Furthermore, combined technical observations of these sources support an argument for a strong bearish momentum for XRP. While Steph_iscrypto hinted at re-taking of $2.40, ali_charts clarified more on whale selling. This is in concurrence with other signals, for example, MACD and DMI, which support the dominance of sellers in the market. Indicators now point towards the current bearish momentum, and market players observe a change in the situation.

Momentum Indicators of Selling Pressure

Directional Movement Index (DMI) is in line with this bearish trend. ADX, a trend-strength indicator, is 36.2982, a powerful bearish trend. The -DI, a gauge of selling power, is well above the +DI, a gauge of buying power, confirming seller dominance.

If selling pressure continues, it is achievable for XRP to test support of between $2.10–$2.00. If it fails to sustain above this support, it may continue its declines toward its subsequent downward goal of $1.48. If, on the other hand, it can be pushed above $2.50, it may negate the bearish pattern, which may see it bounce back.

Market Outlook and Potential Scenarios

The traders keep a close eye on the price action of XRP, which is trading slightly above critical support levels. The market sentiment is dominated by large selling momentum, and traders can see further declines. However, a bullish reversal is possible in case of a revival of lost support levels.

Its short term is being followed closely, as its current trend is downward unless it surpasses levels of resistance. At the time of writing, XRP was at $2.24, down by 0.67% in the past 24-hour period and down 14.23% in the past seven days.