XRP red alert: Whale is dumping heavily, 3 consecutive "death cross" threaten the price to plummet

At the time of writing, XRP has increased by less than 1% in the past 24 hours but has still fallen by 16.5% in the month. Despite a strong month of July, this altcoin continues to signal bearish in the short term.

Whale activity has surged, EMA lines are about to confirm another death cross, and key price levels are under threat. All three factors indicate the potential for a bearish trend in the short term – especially for traders looking for opportunities in the next wave of volatility.

Whales simultaneously push tokens onto the exchange

The capital flow from whales into Binance has once again begun to rise after remaining low since August 13. On that day, the inflow into the exchange reached about 29,805 XRP and shortly after, the price of XRP fell from 3.27 USD to 3.08 USD.

Whale-to-Exchange Flow chart of XRP | Source: CryptoQuantThe whale money flow onto the exchange (Whale-to-Exchange Flow) is an indicator used to track the volume of tokens that whales transfer to centralized exchanges – often a signal of selling intention.

As of August 21, the inflow from whales has increased 7 times compared to the local bottom on August 16, from 900 XRP to 6,293 XRP. Historical data shows that these spikes usually lead to a subsequent bearish trend. Specifically, when the inflow surged on July 30, the price dropped from $3.09 to $2.76; while on August 3, the price fell from $3.07 to $2.96 in the following days.

If this new surge exceeds the threshold of August 13, it will mark a new peak in whale capital – something that has not been recorded during this bearish market phase. At that point, selling pressure is likely to increase, causing short term pressure.

XRP is about to record its third “death cross”

The 4-hour price chart of XRP shows a bearish momentum forming rapidly. Two death crosses from the EMA lines have been confirmed (red arrows) and a third crossover is gradually appearing.

The death cross EMA occurs when the short term moving average crosses below the long term moving average, often signaling a trend reversal. If a third crossover is formed, the XRP price chart will have three bearish patterns in less than a week.

The XRP price chart shows a bearish signal | Source: TradingViewEach time a death cross appeared before, it was accompanied by a strong fall:

The third death cross – occurs when the 50 EMA crosses down the 200 EMA – is considered much more important because it reflects a broader trend change, not just a short-term weakness. When whale capital is also increasing significantly at the same time, the bearish EMA setup further reinforces the likelihood of a price drop.

This model shows that short term sellers are increasingly gaining dominance, coinciding with selling pressure from the whale sell-off.

Important price levels to watch

The daily chart shows that XRP continues to struggle around the Fibonacci level of 2.95 USD. XRP has at times retested this level but has failed to turn it into a support zone.

XRP Price Analysis Chart | Source: TradingViewThe next important support level is at 2.81 USD – previously a strong reversal zone. If this level is breached, the next bearish target will be 2.72 USD, the last support level before the price faces the risk of a deeper fall.

The recovery can only occur if XRP regains 3.16 USD – the Fibonacci level of 0.618 which has acted as resistance for most of August. If this scenario occurs, the short term bearish outlook will weaken.

Itadori