XRP Price Faces Third Bearish Setup in a Week-What Traders Should Watch

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Ah, XRP… currently up a “whopping” 1% in the past 24 hours but still down more than 15% for the month. Despite a rather robust July, the asset has once again decided to toss a few more bearish signals into the mix. Imagine a party where everyone’s having a good time, and then, suddenly, the music stops. Yep, that’s XRP.

Whale activity is suddenly in full swing, Exponential Moving Averages (EMAs) are toying with the idea of crossing bearishly for the third time, and critical price levels are hanging by a thread. All signs point to potential short-term downtrend-especially for traders hoping to ride the next wave of volatility. Grab your surfboards, folks, it’s going to be choppy.

Whale-to-Exchange Spikes: When Big Fish Swim, Prices Dive

In case you were wondering, whale inflows to Binance have started rising once more after a lazy spell since August 13. That day, around 29,805 XRP made its grand entrance, and voilà! The price dropped from $3.27 to $3.08. Coincidence? Oh, I think not.

By August 21, whale inflows jumped a staggering 7x from a measly 900 tokens to 6,293 XRP. History, as we know, loves to repeat itself, and these spikes have typically signaled price dips:

  • July 30 spike: Price plummeted from $3.09 to $2.76
  • August 3 spike: Price sank from $3.07 to $2.96 (in just a few days)

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If this latest whale surge crosses the August 13 threshold, we’ll see a higher high in whale flows. That would be a first during this downtrend phase-and, oh boy, it might just ignite a fresh round of aggressive selling. Buckle up!

For the uninitiated: Whale-to-Exchange Flow tracks the amount of tokens these big holders move to centralized exchanges-usually signaling their intent to sell. Trust me, you’ll want to keep your eyes on this.

Death Crosses: Not Just for Goths Anymore

The 4-hour XRP price chart looks like it’s been reading too much of its emo phase. Two EMA death crossovers are already there, boldly marked by red arrows (how dramatic), and a third one is brewing like a storm. An EMA death crossover occurs when a short-term moving average crosses below a long-term one, often signaling a change in trend direction. How romantic, right?

If this third crossover happens, we’ll have three bearish formations in under a week. No pressure, XRP.

Each of the previous two death crosses has led to a steep price drop:

  • August 15 (20/50 cross): Drop from $3.12 to $2.93
  • August 18 (50/100 cross): Drop from $3.03 to $2.93

The third crossover (50 EMA dipping below the 200 EMA) is much more significant. It signals a shift in the broader trend, not just some short-term weakness. And with whale inflows spiking at the same time, this setup screams more downside ahead. Sorry, bulls, the bears are winning this round.

Key XRP Price Levels: $2.95 Resistance Holds, $2.81 Support at Risk

The daily chart is practically begging for mercy at the $2.95 Fibonacci resistance level. XRP tested it again and… surprise! It couldn’t break through. Not exactly the best performance. If $2.95 holds, it might as well be a giant “no entry” sign.

The next support is at $2.81, which has historically acted as a strong reversal point. If it breaks, however, the next support sits at $2.72, the final line of defense before prices tumble further down.

But here’s a twist: A recovery is not entirely off the table-if XRP can reclaim $3.16 (the 0.618 Fib level that has been a pain for most of August). But let’s not get our hopes up too high, okay?

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2025-08-21 15:09