Crypto analyst Ali Martinez, in his latest assessment of Ripple’s XRP coin, warned that the price could fall to $0.98 if large investors increase selling pressure. The analyst stated that on-chain data and technical indicators increasingly pose a downward risk for XRP.
According to data shared by Martinez, the number of large investor wallets holding between 10 million and 100 million XRP on the XRP Ledger network has decreased from 351 to 339 in the last few weeks. The analyst stated that this decrease of 12 wallets could indicate that large investors are downsizing their positions, potentially increasing selling pressure.
On the other hand, there has also been a remarkable increase in the total amount of XRP held on cryptocurrency exchanges. Exchange balances rose from 11.003 billion XRP to approximately 11.05 billion XRP, remaining at high levels for the past week. Thus, the amount of XRP on trading platforms increased by approximately 50 million.
According to Martinez, the continued influx of assets from large investors to exchanges could increase the supply of XRP available for sale on the market, creating additional pressure on the price.
From a technical analysis perspective, the $1.26 level stands out as a critical support point. Martinez noted that the lower boundary of the price channel that XRP has formed since August passes through this level.
According to the analyst, if the $1.26 support level is broken, the XRP price could initially fall to $1.11. If the decline continues, the $0.98 level, indicated by the channel formation, could come into play. This target represents approximately a 22% loss compared to the $1.26 support level.
Martinez stated that the negative scenario for XRP is based on three key factors: a decrease in the number of large investor wallets, high levels of XRP reserves on exchanges, and a potential break below the $1.26 support level.
*This is not investment advice.
