Is a $0.80 XRP Coming? Analyst Lays Out the Warning Signs

Ripple’s cross-border token has been rejected on multiple occasions at both key supports at $2.00 and $1.90, which have now turned into significant resistance levels.

Popular analyst Ali Martinez outlined a couple of reasons why the asset might be due for another shock, and a possible dump by over 55%.

In a recent post on X, the analyst with more than 160,000 followers warned that the network activity on Ripple’s platform has plunged in recent weeks. He noted that the number of active addresses has decreased from 46,000 to under 39,000 in the span of just several days.

However, this is somewhat expected given the Holiday season, as investors tend to stay away. His second reason might be more concerning, as it involves whales – perhaps the most crucial investor cohort behind every cryptocurrency.

They have been on a substantial selling spree for over two months now. In fact, they began disposing of their XRP tokens once it became known that the long-anticipated spot Ripple ETFs would go live in the US in November. At one point, they had dumped almost 1.5 billion tokens in less than a month, and they have continued selling as he reported recently.

Speaking about the ETFs, they might be the silver lining here. Ever since the first one went live for trading on November 13, investors have continuously poured money into all five, and no single day has ended in the red in terms of net flows. In just over a month, the financial vehicles tracking XRP’s performance have outperformed their BTC, ETH, and SOL counterparts by attracting $1.15 billion, according to SoSoValue data.

If the net inflows remain the same or even increase over time, they could provide substantial support for the underlying asset’s price moves.

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