The entire crypto space is displaying a misty environment where-in fewer possibilities of a bull run are witnessed. Conversely, a huge probability of the asset falling into bearish trap surfaces and hence XRP price is also feared to lose more than 20% in the upcoming days. The bearish predictions include the technical, fundamental and social aspects.
XRP Price in a Desecive Bearish Triangle
The very first reason for the beamish prediction is that the price trading within a significant descending triangle. The XRP price has been consolidating within the descending triangle pattern ever since it smashed the 2021 highs. By forming constant lower highs along its upper trend line, it found a solid support lien along with $0.55 levels.
The XRP price closed the weekly trade on a bullish note but the formation of a bearish hammer has raised many concerns. But the current weekly candle has begun with a bullish hammer, calming down at the moment. But the other metrics do point out a notable pullback as the buying volume still remains below the average.
Ripple’s Escrow FUD!
Ripple’s Escrow which is held by Ripple Labs has huge XRP balances left which are expected to be let out every now & then. It was believed that the account held nearly 50 billion XRP and according to some reports nearly 800 million XRP are ready to be sold.
The company moved nearly 100 million XRP earlier this month and nearly 200 million XRP out of the 700 million is all set to flood the market soon. And hence the fear of a notable sell-off has made more noise nowadays. However, the withdrawal of 800 million XRP is yet to be reflected in its circulating supply.
Price Correlated with Social Dominance
XRP price has showcased a correlation with the social interest off-let. As the social searches, and the media trends for XRP increased, the price reacted positively. Currently, as per the data from Santiment, the search volume has diminished to a large extent. And hence a significant drop may be expected very soon.
Therefore, these are the potential reasons that point out a significant drop in the upcoming days. However, the updates from the Ripple vs SEC case may offer interim relief. But the fear of the XRP price plunging more than 20% still prevails within the crypto space.
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Source: https://coinpedia.org/price-analysis/this-is-why-ripple-xrp-price-may-encounter-the-first-bearish-week-of-2022/