XRP price risks another 20% drop after ‘Digital Asset Stockpile’ letdown
XRP’s technical indicators and recent market events suggest a potential decline, raising concerns for investors. As of March 8, 2025, XRP faces mounting pressures that indicate a possible 20% price drop in the near future, with three key signals suggested by recent analyses and historical patterns.
XRP Price Chart Analysis
Currently, the XRP/USD pair is forming a symmetrical triangle on its weekly chart. This pattern reflects a tug-of-war between buyers and sellers, indicating a conflicting bias that often resolves with a breakout in either direction depending on prevailing momentum. Contrary to common assumptions, symmetrical triangles do not always indicate bullish continuation; historically, they have led to declines rather than upward trends. An illustrative case is the 2018 breakdown in Ethereum’s price, which resulted in an 80% drop.
Applying technical analysis rules indicates that in a typical breakout situation, XRP’s price could target approximately $1.46, aligning with the 50-week exponential moving average. This suggests a risk of significant loss if the bearish sentiment continues.
Political Climate Impacting XRP
The anticipated revisions in the cryptocurrency regulatory framework have added further jitters to the XRP market. Following the inaugural Crypto Summit held by the White House on March 7, initial optimism that XRP might be included in a strategic U.S. crypto reserve has quickly evaporated. Although several cryptocurrencies were initially mentioned by President Trump’s team, it later clarified that these were merely examples, not formal selections. This clarification triggered a roughly 10% decline in the XRP market.
In contrast, Bitcoin appears to be gaining favor with the Trump administration, with indications that the U.S. government is currently holding around $17.7 billion in BTC. This shift in focus from Bitcoin to XRP has negatively impacted investor sentiment, further complicating XRP’s market position.
Surge in Trading Volume Indicates Distribution Phase
Recent trading volumes for XRP have spiked, reminiscent of previous bear market patterns. Analysts, including Martunn, have warned that XRP is currently in a distribution phase where large holders offload their positions to smaller retail buyers following a major price increase. This behavior often indicates an impending decline, with a strong historical correlation to previous downturns in the market.
In fact, XRP recently experienced a significant 600% price rise from November 2024 to January 2025, a classic setup for distribution and potential correction. Moreover, the tangible decline in whale holdings—dropping from 94.21 billion XRP to 90.21 billion in the past year—reflects a loss of confidence among major investors.
The selling actions of whales, entities holding substantial portions of XRP, can initiate a ripple effect, leading to increased market pressure as smaller investors potentially follow suit. The decline in liquidity could exacerbate any price drops, underscoring the importance of monitoring whale movements in conjunction with market trends.
In summary, the combination of technical indicators, political developments favoring other cryptocurrencies, and indications of a distribution phase among top investors casts doubt on XRP’s near-term performance. Investment strategies in the volatile crypto market require constant vigilance and a keen understanding of these evolving dynamics.
