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Will there be a $0.80 XRP? Analyst explains the warning signs

However, there are also some positive points.

Ripple’s cross-border token has been rejected multiple times at both key supports at $2.00 and $1.90, which have now turned into significant resistance levels.

Popular analyst Ali Martinez outlined a number of reasons why the asset may be in for another shock, and a possible dump of more than 55%.

In a recent post on X, the analyst has over 160,000 followers warned that network activity on Ripple’s platform has declined in recent weeks. He noted that the number of active addresses dropped from 46,000 to less than 39,000 in just a few days.

However, given the holidays, this is somewhat expected as investors tend to stay away. His second reason is perhaps more concerning, because it involves whales – perhaps the most crucial investor cohort behind any cryptocurrency.

They have been on a significant selling spree for over two months now. In fact, they started selling off their XRP tokens when it was announced that the highly anticipated spot Ripple ETFs would go live in the US in November. At one point, they had dumped nearly 1.5 billion tokens in less than a month, and they have continued to sell, as he recently reported.

Speaking of the ETFs, they could be the silver lining here. Since the first one went live for trading on November 13, investors have continuously poured money into all five, and not a single day has ended in the red in terms of net flows. According to data from SoSoValue, financial institutions tracking XRP’s performance have outperformed their BTC, ETH, and SOL counterparts in just over a month by attracting $1.15 billion.

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If net inflows remain the same or even increase over time, they can substantially support the price movements of the underlying asset.

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