XRP Price Drops 4% – Weak whale demand and profit-taking after the SEC case closure trigger a bearish trend

After attempting to regain bullish sentiment in the second and third week of March, XRP/USD has gradually signaled a bearish outlook.

The price of XRP dropped by nearly 4 percent on Thursday, March 27, signaling a bearish trend in the past week.

The large-cap altcoin, which has a fully diluted valuation (FDV) of about $236 billion and a 24-hour average trading volume of around $3.3 billion, moved down to trade at $2.36 by the mid-European session.

As a result of the sudden decline, more than $10 million was liquidated from XRP’s leveraged trading, with over 97 percent involving long traders.

What Caused XRP Price Decline?

In addition to the bearish technical outlook, XRP price has experienced low demand from whale investors. According to on-chain data from Santiment, XRP whale investors, who have an account balance of between 1 million and 10 million coins, have been silent in the past week and currently hold about 5.82 billion coins.

Moreover, the closure of the SEC vs Ripple case after years of litigation has turned into a classic sell-the-news event.

Also, more speculative traders have been set up and have recently accelerated profit-taking after the stellar performance of XRP throughout March.

Nonetheless, XRP’s long-term fundamental outlook remains extremely bullish catalyzed by legal clarity and the rising adoption of Ripple products by institutional investors.

Midterm Targets

As Coinpedia previously reported, XRP price has possibly formed a reversal pattern characterized by head and shoulders (H&S) coupled with a falling divergence of the daily Relative Strength Index (RSI).

Following Wednesday’s close below $2.37, XRP price is now aiming to retest the next major support range between $1.9 and $2. But a potential reversal and close above the resistance level around $2.5 will result in a fresh pump toward price discovery ahead.

Failing the support could further extend the bearish trend to reach the lower critical level at $1.1. A breakdown below this level will completely negate the bullish outlook and signal a continuation of the bear market from 2022.

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