XRP, with its 100 billion tokens, has an interesting concentration among whale wallets. XRP proponent Chad Steingraber highlighted this on social media, noting that the public supply is less than people realize. Ripple controls most of the supply through an escrow system releasing a small portion each month. Out of 55.6 billion XRP in circulation, the top 10 addresses control 11.2 billion XRP, and the top 50 addresses control 26.9 billion XRP, almost half of the current supply.

This concentration of XRP among whales could drive up prices if they don't sell. Increased scarcity might worry new retail traders but signals confidence in XRP's future price action. Retail trading determines the price, so increased demand will lead to a price increase. XRP is trading at $0.4759, down 6.28% in the past week, with a recent consolidation. Bulls are active near $0.4620, setting the stage for interesting price action in July. Historically, July has seen positive price action for XRP, with a 47.6% increase in July 2023 after an 8.15% drop in June 2023. If history repeats, XRP could end July around $0.70.

XRP's price flash indicates four warning signs, including a bear flag setup, whales dumping, a death cross, and no spot XRP ETF in sight. A bear flag pattern suggests a potential downturn. XRP is hovering at the lower trendline of its bear flag, signaling a potential breakdown. A decisive break below the flag's lower trendline risks positioning XRP's price for a fall toward $0.24 by May or June.

XRP whales are dumping, with a substantial inflow of XRP into exchanges. Ripple transferred $24.75 million worth of XRP tokens into an unknown wallet on January 30. This transfer is likely part of Ripple's routine operations involving tokens unlocked from escrow each month. The timing of these transfers aligns with a critical shift in XRP holdings distribution. There's a noticeable decrease in XRP reserves among whales holding between 100 million and 1 billion tokens, alongside increased holdings by entities possessing over 1 billion tokens, likely crypto exchanges.

Following the decline in XRP holdings among whales, there's been a corresponding uptick in the supply controlled by the group holding 10 million to 100 million XRP. This suggests either the selling or redistribution of XRP holdings by whales. XRP's sell-off risks a further increase due to a confluence of two bearish technical setups on shorter timeframes. First, XRP's 50-day exponential moving average will likely cross below its 200-day EMA, forming a "death cross," a bearish signal. Second, XRP is painting a head-and-shoulders pattern on its daily chart, a bullish-to-bearish trend reversal pattern.

Analysts aren't optimistic about a spot XRP ETF happening soon, which could dampen demand for XRP versus Bitcoin and Ether. The ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission is a big reason, along with the absence of an XRP futures ETF in the United States. The price of XRP skyrocketed after a federal court ruling declared its sales on crypto exchanges comply with U.S. securities laws. On July 14, the XRP price retreated by about 10% to $0.76, still up around 65% compared to its lowest price the previous day.

At its highest in the last 24 hours, the XRP/USD pair reached $0.93, its best level since December 2021, just shy of hitting the $1 mark. The duration of XRP's massive pump coincides with its trading volumes reaching a 10-month high. The number of XRP whale transactions climbed to their best level in 2023, suggesting the wealthiest investors back the XRP rally. If key whale and shark addresses increase their supply going into this pump, it's a good signal that the pump may just be getting started, and it's a sign of good things to come.

XRP can test the key $1 level in the coming days, but its potential to continue its rally beyond looks weak for the time being. The pullback on July 14 occurred near a resistance confluence comprising a multiyear horizontal trendline and a giant descending trendline ceiling. In addition, XRP's weekly relative strength index has turned overbought, raising its correction prospects. Should a pullback occur, XRP's price risks dropping toward its multiyear ascending trendline support near $0.45 by September, down around 55% from the current price level.

Ripple funding rates remain positive, supporting a positive outlook on the asset's price. Funding rates is a metric used to predict market behavior and interpret the dominant sentiment among participants.