The cryptocurrency market remains volatile, with XRP experiencing a sharp 26.14% decline in the last 24 hours. This downturn coincides with significant whale activity, where over 130 million XRP were offloaded, intensifying selling pressure.
Adding to concerns, a staggering 100 million XRP—valued at approximately $283 million—was unlocked from escrow into an unknown wallet. This large-scale release has further fueled bearish sentiment, leaving investors questioning whether the downward trajectory will persist or stabilize.
Whale Sell-Offs Drive XRP’s Decline
Whale movements have played a crucial role in XRP’s sharp decline. The massive dump of 130 million XRP in a single day flooded the market, eroding investor confidence. Historically, such sell-offs trigger panic among smaller traders, leading to further liquidation and exacerbating price drops.
DEX Data Confirms Bearish Sentiment
According to CryptoQuant, XRP’s decentralized exchange (DEX) buy-sell ratio over the past 16 hours has remained low, indicating significant selling pressure. This declining ratio mirrors trends observed on centralized exchanges, suggesting a lack of buying interest. If sellers continue to dominate, XRP could face additional downward momentum.
Market Participation Declines
XRP’s on-chain data reveals a significant drop in active addresses, highlighting decreased trading activity. Lower participation typically translates to reduced liquidity, making price swings more volatile. However, if the number of active addresses rebounds, it could indicate renewed investor confidence and potential price stabilization.
XRP faces intense selling pressure as whale activity, escrow releases, and bearish technical indicators dominate the market. The Moving Average Convergence Divergence (MACD) suggests continued downside potential, reinforcing the negative outlook.
Despite the bearish conditions, long-term investors may view this correction as an accumulation opportunity. Whether XRP stabilizes or extends its losses depends on buyers re-entering the market to counteract selling pressure. If confidence returns, a price rebound could be on the horizon.
For now, XRP traders must remain cautious as the market awaits the next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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