As the new year began, the cryptocurrency market saw a remarkable rise, with many tokens, including Ripple’s XRP, gaining substantial value. However, XRP’s impressive run was recently interrupted, with a decline of approximately 13% bringing it down to $2.10.

XRP’s surge started when prices jumped approximately 30% in less than a week, from under $1.90 to a peak of $2.41, potentially fueled by increasing ETF inflows and a decrease in exchange-held tokens.

Nevertheless, analysts caution that XRP might be showing signs of a bearish reversal. Ali Martinez noted a potential gravestone doji candle forming, which typically indicates impending price drops. This pattern serves as a warning that the momentum may not last long, especially after such a rapid increase in value.

“$XRP appears to be printing a gravestone doji. Not a great look!” — Ali Charts, Twitter

Another concern for XRP prices is the drop in whale transactions. Reports indicate that while large transfers spiked significantly earlier this month, they have now decreased considerably, suggesting that the recent price spike may not be stable.

As the analysis unfolds, the outlook for XRP investors remains cautious, emphasizing the importance of closely monitoring market trends and whale activity.