As a long-term XRP investor, I’ve seen my fair share of ups and downs in the market. However, the recent dip below $0.5 has left me feeling uneasy, especially given the sudden sell-off by a major whale. The possibility that this whale could be linked to Ripple Labs only adds fuel to the fire.
As a crypto investor, I’ve noticed that the XRP market is currently going through a significant drop. The value of Ripple Labs’ backed digital asset has fallen below the important $0.5 threshold, triggering concerns among investors. This downturn has led to a wave of pessimistic feelings towards XRP, causing many to question its future direction.
During this time, it’s important to mention that the unexpected drop in XRP tokens could primarily be attributed to whale activity as reported by Whale Alert. A significant XRP investor, tagged as Hh4Rzn on the platform, is believed to have sold off a massive amount of 30 million tokens. The whale moved these tokens to Bitstamp exchange. While the true identity of this whale remains undisclosed, there are reasons to suspect a connection to Ripple Labs, the creators of XRP. This suspicion arises due to past occurrences where similar large-scale sell-offs have taken place following Ripple’s strategic investment in Bitstamp, raising eyebrows in the crypto community.
Concerns in XRP Market as Token Price Slips below $0.5
Due to the recent whale transactions, XRP prices dipped below the $0.5 mark, a decline that followed a week-long trend of price pullbacks. By the time of reporting, XRP was trading at $0.4941, representing a 2.43% decrease in the last 24 hours. The token’s market capitalization dropped by 2.43%, reaching $27.35 billion, while trading volume saw a significant increase of 62.69% to $641.66 million as per CoinMarketCap data.
Significantly, XRP prices aren’t the only aspect influenced by recent whale transactions. Coingecko data indicates a heightened sense of unease in the XRP market as open interest decreased by 0.47% to $553.19 million and derivatives volume surged by 88.82% to the same amount. Additionally, technical indicators like the Relative Strength Index (RSI), currently at 37, suggest considerable selling pressure and cast doubt on XRP reaching its desired price of $1 in the near future.
From my perspective as an analyst, the challenges for XRP were already mounting prior to the recent large-scale sell-off. The protracted legal battle between Ripple and the US Securities and Exchange Commission (SEC) has significantly impacted its lackluster results.
Way Forward
Expert: Bill Morgan, a prominent supporter of Ripple and its XRP token, expressed his thoughts on the recent dip in a recent post. In this post, he referred to the previous week as one that should be forgotten due to XRP’s current state. However, some of Morgan’s followers pointed out that such declines have become commonplace for XRP over the past six years.
After the large-scale sale of XRP by a major investor, also known as a “whale,” the direction of XRP in the market is currently unclear and open to interpretation.
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2024-05-13 11:41