XRP Warning: Bearish Signal Without Exceptions Is Big Problems for Ripple Price

XRP is trading near $2 as a bearish EMA ribbon flip returns. Analysts are warning of a possible decline as the whales are active and ETF inflows continue to increase.

Historical bearish pattern returns

Market analyst Steph Is Crypto has done that shared a recurring pattern on the 3-day chart of XRP. According to the analysis, the asset has entered a long down phase whenever the EMA ribbon moves to a bearish setup and the price remains below it. In the past, declines ranged from 27% to 66% and often lasted several months. The signal has occurred several times over the years, including notable declines in 2014, 2019 and 2022.

XRP has once again ended up under the EMA ribbon, causing the same setup. Based on the chart, the ribbon has turned bearish and the price has yet to reclaim it. If the pattern holds, XRP could face another extended period of downtrend.

“So far this signal has no exceptions,” the analyst said.

CRYPTOWZRD shared an update on XRP’s daily chart, noticing that the last daily candle closed somewhat bearish. The weekly chart remains undecided. The $2.1 level now acts as short-term resistance. A clear break above that could change the momentum. If the price fails at this level, it could lead to more sales.

On the intraday chart, XRP is showing signs of a pullback after recent volatility. A move to $2.1 followed by weakness could trigger short setups. If the price remains above this level, the structure may begin to shift towards a more bullish stance.

Lateral reach maintains structure

ChartNerd posted that XRP remains within a 13-month trading range, which extends from just below $2 to a resistance zone just above $3.00. The item is currently near the lower limit, but has not broken below it.

There is no change in the broader structure as long as XRP remains within this range. The recent move is part of an extended sideways phase, and the market has yet to move in a clear direction.

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Meanwhile, Ali Martinez also pointed to a TD Sequential buy signal on XRP, but warned:

“Everything depends on $1.90. Hold it and $2.50 comes into play.”

Whales active as ETF demand increases

If CryptoPotato The reported data shows that large account trading activity has increased even as XRP nears annual lows. The company noted a shift in customer volume demand, which the company said is common during lows.

Additionally, US-listed XRP spot ETFs have seen steady interest. Since launching on November 13, they have recorded 30 days of net inflows. SoSoValue reports that total net assets are approximately $1.18 billion, with net inflows of approximately $991 million. These funds continue to grow even as other crypto ETFs report outflows.