Whale distribution and a descending triangle pattern suggest XRP could face significant declines in early 2025.

XRP has seen a remarkable surge in the past two months, gaining over 300% to reach $2.10 as of 27 December. However, technical and on-chain indicators now point to potential price corrections, with experts warning of a possible 25% decline in early 2025.

Descending Triangle Breakdown Looms

XRP’s price action shows signs of weakness, trading within a descending triangle pattern—a bearish technical structure. This pattern is characterised by a series of lower highs forming a descending trendline, while the $2.10 level serves as horizontal support.

A breakdown below the $2.10 support could trigger a deeper correction, with the descending triangle’s height suggesting a potential downside target of $1.64. This would represent a 25% drop from current price levels by January 2025.

Whales Sell as Price Declines
On-chain data supports the bearish outlook, highlighting distribution among large XRP holders. Wallets holding over 1 million XRP tokens have offloaded approximately 180 million tokens since the start of December. Similarly, wallets holding 100,000 XRP tokens have reduced their holdings by 170 million.

This large-scale selling activity aligns with XRP’s 26% price decline from its recent peak of $2.90. Whale selling increases the token supply in circulation, exerting downward pressure on the price and indicating that supply is outpacing demand.

Binance XRP Reserves Climb
Adding to the bearish sentiment, XRP reserves on Binance, the world’s largest cryptocurrency exchange by trading volume, have steadily risen since mid-December. Increasing reserves on exchanges often signal heightened selling pressure as traders move assets to platforms to liquidate positions.

The growing supply on Binance strengthens the narrative of profit-taking at local price highs. Unless this trend reverses, XRP may face continued downward pressure, with its price potentially falling to $1.64 in the coming weeks.

Outlook for XRP in 2025
While XRP has delivered impressive gains over the past two months, a combination of bearish technical patterns, whale distribution, and rising exchange reserves suggests the rally may be losing momentum. Traders should closely monitor the $2.10 support level, as a breakdown could open the door to further losses.

For now, caution remains key, with XRP’s price trajectory in early 2025 likely dependent on whether demand can absorb the increasing supply.