XRP prices drop by another 20% after “Digital Asset Stock Pile” letdown

As of March 8, XRP (XRP) is facing technical and basic pressure installations that suggest a price drop of 20% in the near future. Recent market analysis and drawings from historical patterns require investors to watch three important signals.

XRP Price Chart shows tips with a 20% drop

XRP/USD currently forms symmetrical triangles on its weekly charts. This is a pattern that reflects the tug of war between buyers and sellers.

Contrary to popular belief, symmetrical triangles are not always a bullish continuation pattern. They show conflicts of bias and often resolve in either direction with breakouts based on general momentum.

Historically, we have seen such setups lead to declines rather than bull runs. For example, a 2018 triangle failure on Ethereum caused an 80% drop.

When that happens, the price usually rises or falls towards a level of length equal to the maximum height of the triangle. Applying this technical rule to XRP will result in a downside goal of around $1.46. This coincides with the 50-week exponential moving average.

Trump accepts Bitcoin, not XRP

XRP prices have fallen, following the White House’s first Crypto Summit on March 7th.

Despite the initial excitement, President Donald Trump’s team revealed that the cryptocurrencies mentioned, Ethereum, Solana, Cardano and XRP, are illustrative examples rather than official choices.

@DavidSacks, why are you walking XRP mentions in Trump’s crypto prep plan as it’s an afterthought?

Just as you were urged to do so.

Jig knows what XRP is and why it is still being suppressed while all other SEC cases are being removed. Why…pic.twitter.com/96x6zvblie

– Jason Higgins🇺🇸 (@jasontrading589) March 7, 2025

Furthermore, there is no evidence that the US government has XRP, and Trump’s broader stockpile strategy focusing on Altcoins has ruled out new purchases. This revelation has already caused a 10% decline in the XRP market.

Related: US Cryptocurrency could increase Bitcoin’s market capitalization by $46 billion – Survey

Meanwhile, Bitcoin has gained a clear favor from the Trump administration, with the US holding around $17.7 billion in BTC.

Meanwhile, the XRP/BTC pair is integrated within the historic distribution zone, but exceeds the 200-2W EMA (Blue Wave) of approximately 2,459 Satoshis.

A break below the 200-2W EMA pushes XRP/BTC to 50-2W EMA (red wave) at about 1,700 Satoshis, causing a correlated reduction in XRP/USD, which could amplify the risk of a 20% reduction.

XRP Volume Explosion Mirror 2021 Bare Market

XRP trading volume has recently skyrocketed to record levels. Analyst Merton warns that XRP is in distribution phase.

This volume surge follows a 600% increase in XRP from November 2024 to January 2025. This is a classic setup for distribution.

In 2021, similar volumes of explosion preceded the prolonged downward trend as sales pressures ultimately outweighed demand. As history repeats itself, XRP could face another major correction, adjusting to the symmetrical triangle failures described above.

The decrease in XRP whale holdings further reflects the distribution. The whale balance fell from 942.1 billion to 9002.1 billion XRP per year, eliminating the increase in post-US elections, “Trump Pump.”

Whales hold large investors or substantial amounts, so in this case they are dealt with XRP balances above 1 million.

When whales offload, these players usually have access to better market insights and strategic plans, often informing them of their lack of confidence in the short-term performance of their assets.

Their sales create ripple effects, reducing liquidity and increasing sales pressure as small investors follow suit.

This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.