XRP Price Prediction: Bearish Pattern Points To $2.20

Key Takeaways

• Whales are offloading $50 million in XRP daily, contributing to increased selling pressure.

• XRP is forming a descending triangle, with a potential price target of $2.20.

• Exchange balances are rising, signaling more tokens are available for sale.

• Traders and analysts suggest XRP could become a short candidate.

• Optimism remains over a potential XRP ETF approval, which could reverse the bearish trend.

Whale Activity Raises Red Flags

Over the past few weeks, XRP whales, entities or individuals holding significant amounts of the token, have been steadily offloading their holdings.

According to CryptoQuant analyst Maartunn, whale wallets are shedding around $50 million in XRP daily, based on a 30-day moving average.

XRP: Whale Flow 30DMA Change

Source: CryptoQuant

Analysts Warn Of Bearish Conditions

Crypto analyst CryptoOnchain echoed this concern, stating on Oct. 3rd that:

“The data points to immense selling pressure, creating a high risk of a sharp correction. Conditions are ripe for a major price decline.”

Technical Analysis: Descending Triangle Hints At $2.20 Target

XRP is now forming a descending triangle pattern on the daily chart, a well-known bearish formation.

According to renowned trader Peter Brandt, if XRP breaks below the support line around $2.75, it could lead to a significant drop.

What Is The Descending Triangle?

A descending triangle forms when a horizontal support level holds steady while lower highs build downward pressure.

Once the price breaks below support, the measured move, calculated from the triangle’s height, can predict the next support zone.

In XRP’s Case:

• Support Level: $2.75

• Pattern Target: $2.20

• Potential Drop: ~22% from current levels

“$XRP is on my list of short candidates, but it is conditional upon completing the descending triangle,” Brandt noted.

XRP Market Sentiment: Fear Returns

Adding to the technical weakness is rising market fear. Sentiment metrics have returned to levels not seen since major macroeconomic events, such as the tariff-related sell-off in April under the Trump administration.

With a weakening technical structure and growing whale exits, the XRP price prediction is leaning bearish in the short term unless a significant catalyst appears.

Rising XRP Supply On Exchanges

This selling activity aligns with on-chain data from Glassnode, showing a marked increase in XRP balances on centralized exchanges throughout late September and early October.

XRP Percentage Balance On Exchanges

Source: Glassnode

A higher exchange supply typically indicates investor intent to sell, rather than hold. Maartunn commented:

“Selling pressure persists. Such behavior could precede a larger market correction.”

Could an XRP ETF Save The Day?

Despite the growing pressure, there is still a ray of hope. Market watchers are closely monitoring developments surrounding a potential XRP ETF.

A notable XRP commentator, XRP Update, stated that the U.S. Securities and Exchange Commission (SEC) might approve an XRP ETF by October 18th.

This could mark a key turning point for the token’s adoption and credibility among institutional investors.

However, even if approved, analysts warn of a possible “sell-the-news” event, where whales use the ETF approval as an opportunity to exit.

FAQ

What is the current XRP price prediction?

The short-term prediction suggests a potential drop to $2.20, based on technical patterns and whale selling activity. Longer-term predictions depend on regulatory decisions, such as the potential ETF approval.

Why are XRP whales selling?

Whales are transferring large amounts of XRP to exchanges, indicating a likely intention to sell. This is adding to the overall selling pressure in the market.

What is a descending triangle, and why does it matter for XRP?

A descending triangle is a bearish chart pattern that suggests a breakdown could lead to further losses. For XRP, breaking below $2.75 could push the price down to $2.20.

Will an XRP ETF be approved?

While speculation exists around a possible approval by October 18, nothing has been confirmed by the SEC. If approved, it could boost XRP’s price and market legitimacy.

Should I buy or sell XRP now?

This depends on your investment horizon. Short-term indicators are bearish, while long-term prospects could improve if positive regulatory news surfaces.