Peter Brandt, a veteran trader, has cautioned a potential bearish outlook for XRP in the midterm. Brandt has noted that the XRP price may be developing a descending triangle with a midterm target of around $2.68.
While using historical data to compare price action, Brandt noted that the XRP price may be eyeing $2.22 if the support level around $2.68 fails to hold. He highlighted that XRP’s weekly timeframe has been forming a bearish divergence of the Relative Strength Index (RSI).
Why is XRP Price Dropping Today?
Rising Exchanges Supply amid Low Demand from whales
The supply of XRP on major crypto exchanges has been on the rise in the recent past. According to on-chain data analysis from glassnode, more than 320 million XRP were deposited to major crypto exchanges in the past seven days, thus increasing their net supply to over 3.8 billion coins.
Meanwhile, the overall demand for XRP from whale investors has declined compared to the exchanges’ net supply.
High Liquidation of Long Traders
The XRP price likely dropped following the notable liquidation of long crypto traders. Notably, XRP’s leveraged liquidation amounted to over $23 million in the past 24 hours, while the long traders accounted for over $21 million.
As such, the odds of a long squeeze increased the midterm bearish outlook for XRP.
Earlier on Tuesday, market intelligence platform Santiment revealed that the XRP community has been showing a growing impatience. With the rising bearish FUD (fear, doubt, and uncertainty), XRP selling orders have surged.
Nonetheless, Santiment noted that the XRP price has performed exceptionally well after periods of FUD and vice versa.
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