XRP has formed a classic bearish pattern on its two-day chart and if that is confirmed, a price drop to $0.80 might be on the cards in the following few weeks.
XRP (XRP) could slide lower as its bearish chart structure converges with renewed whale activity on Binance.
Key Takeaways:
Bear pennant setup suggests 42% decline in XRP price
XRP has formed what looks like a bear pennant setup on its two-day chart.
A bear pennant pattern forms when price consolidates inside converging trendlines after a pointy decline, generally known as a “flagpole.” It often dissipates with one other leg down, roughly corresponding to the initial descent.
XRP/USD two-day chart. Source: Cointelegraph/TradingView
On the XRP chart, the structure emerged after the sharp sell-off towards the $1.12 zone. Price has since squeezed right into a tightening triangle and stays below key moving averages, reflecting weakening momentum.
A decisive break below pennant support could open the door for a move towards $0.80, which is about 42% below current levels.
Analyst BitGuru noted support at $1.22 and said if the altcoin holds this level, “we could see a reversal and a slow recovery soon.”
XRP/USD each day chart. Source: BitGuru
As Cointelegraph reported, a break and shut below $1.20 would confirm that the bears are in charge. The XRP/USD pair could then fall to $1.11 after which to $1.
XRP whales transfer hundreds of thousands of tokens to Binance
According to data source CryptoQuant, greater than 31 million XRP were transferred to Binance on Saturday, marking the biggest inflow to exchanges since January 20.
These inflows were primarily driven by the activity of huge holders, with these investors accounting for greater than 88% of XRP transfers to Binance as of February twenty first.
The highest transfer occurred through wallets with greater than 1 million XRP, consisting of 14.5 million tokens. Companies with 100,000 to 1 million XRP sent greater than 14.2 million XRP to Binance, while corporations with 10,000 to 100,000 XRP transferred 2.9 million XRP. The other transfers were lower than 100,000 XRP and were constituted of smaller wallets.
“In total, this represents nearly $45 million in sudden potential selling pressure that requires close monitoring,” CryptoQuant analyst Darkfost said in a QuickTake note on Monday, adding:
“If this selling pressure continues, XRP could struggle to get well from its ongoing correction within the near term.” 
XRP Ledger: Exchange inflow by holder cohort. Source: CryptoQuant
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