The cryptocurrency XRP, backed by Ripple Labs, witnessed a significant whale transaction today, stirring concerns within the crypto community. According to blockchain tracker Whale Alert, a whopping 28.9 million XRP, valued at $14.70 million, was transferred to the Luxembourg-based exchange Bitstamp. This hefty selloff, coupled with the ongoing Ripple-SEC lawsuit and bearish market sentiment, has sent XRP prices tumbling.
Whale Activity and Price Impact:
The unknown wallet “…Rzn” initiated the XRP transfer, coinciding with a decline in the token’s price. This sudden increase in supply, aligned with the whale’s action, likely contributed to the price drop. Further analysis by Coinglass revealed a 1.95% increase in open interest, reaching $562.34 million, indicating increased liquidity and potentially reinforcing the downtrend.
Bearish Signals and Price Drop:
The options trading data painted a bleak picture, with a 46.56% decline in volume, reflecting the bearish market sentiment surrounding XRP. As a consequence, the XRP price dipped to around $0.50, marking a 0.78% decrease in the last 24 hours and a 1.22% and 11.19% decline in its weekly and monthly charts, respectively.
Market Analyst Insights and SEC Lawsuit:
Crypto analyst Cryptoes highlighted the formation of a daily falling wedge pattern for XRP, suggesting a potential shift in price action soon.
This development comes amid the ongoing Ripple-SEC lawsuit, where recent reports indicate the SEC gaining the upper hand. Following this news, Ripple transferred 120 million XRP to an undisclosed wallet, further adding to the uncertainty surrounding the token’s future.
The recent whale activity, coupled with the bearish market sentiment and the SEC lawsuit, has created a cloud of uncertainty over XRP’s future. While analysts like Cryptoes offer insights into potential price movements, the overall outlook for XRP remains cautious, with investors keeping a watchful eye on the ongoing legal battle and market developments.