The XRP asset price is going through a decisive moment after recording a drop of 11.4% during the month of December. According to data analyzed by Kamina Bashir, this negative trend could break a streak of two consecutive years of annual gains. The weakening of momentum in the market is evident given the increase in selling pressure across various platforms.
According to analyst Darkfost, a significant increase in flows to Binance has been detected since the middle of the month. These massive deposits suggest a clear selling intent by both institutional and retail investors. Therefore, investor behavior is shifting drastically toward profit-taking and capitulation at this cycle’s close.
Likewise, wallets that held the asset for more than two years have drastically reduced their share of the total supply. However, some experts point out that the charts show technical patterns that could invalidate the current bearish trend. Thus, the asset is at a technical and fundamental crossroads that will define its trajectory in the short term.
Can the Adam and Eve pattern spark a historic rebound for Ripple?
The formation of a reversal structure in short-term charts has sparked optimism among certain sectors of the market. In this way, the Adam and Eve pattern could signal an imminent shift toward a bullish trend if confirmed soon. Additionally, some analysts compare the current scenario with the 2017 cycle, where a massive cryptocurrencies expansion occurred.
Nevertheless, constant capital inflows to exchanges still represent a considerable obstacle for any sustained recovery attempt. So the market faces sustained sell-side pressure that makes entering a real accumulation phase difficult. In this way, the comparison with historical cycles depends on conditions that do not always repeat exactly the same.
Is a six hundred percent recovery possible based on past cycles?
Despite the pessimism from the monthly losses in October and November, long-term projections mention ambitious targets. Therefore, a confirmed breakout could lead the value to significantly higher levels according to technical analysis metrics. If the current support withstands the onslaught of sales, buyers could regain full control of the market.
Finally, the outcome of this struggle between on-chain data and technical charts will be known in the coming operating weeks. It will also be crucial to observe if flows to exchanges begin to decrease to allow for stabilization. Therefore, the future of the coin will depend on the balance between capitulation and the confidence of new buyers. The current scenario requires constant monitoring by financial operators and enthusiasts of the sector.
