- XRP whale offloads 31 million coins, causing market concerns.
- The SEC seeks $102.6 million from Ripple after a letter from Terraform Labs, adding layers to XRP’s regulatory challenges.
The recent spike in whale activity in XRP, the cryptocurrency that Ripple supports, has investors worried. Within the previous day, a whale offloaded almost 31 million XRP tokens to centralized exchanges. This move has created doubts regarding the asset’s future price behavior in the middle of a recent price recovery.
Whale Activity and Market Impact
Since large-scale token dumps to exchanges raise supply and may lower prices, they are usually interpreted as bearish market indications. Whale Alert reports that within the last day, a well-known XRP whale moved 30.350 million XRP to Bitstamp.
🚨 30,350,000 #XRP (14,866,712 USD) transferred from unknown wallet to #Bitstamphttps://t.co/6CuOmlm43k
— Whale Alert (@whale_alert) June 16, 2024
The $14.53 million major movement was mostly targeted at Bitstamp, a cryptocurrency exchange with its headquarters in Luxembourg.
Because big sales typically result in price drops, these transactions have made participants in the cryptocurrency market gloomy. Market balance may be upset and volatility increased by the selling pressure these dumps generate.
Meanwhile, according to CoinMarketCap, XRP is currently valued at about $0.495, having risen by 1.13% in the previous day. But it shows a bearish position—down 0.19% over the last seven days.
The market cap of the cryptocurrency is $27.54 billion, with 56 billion XRP in circulation. Partly due to encouraging news about the XRP Ledger (XRPL), the market has exhibited hints of resilience despite the recent price decline.
Positive Developments and Investor Sentiments
The talks between Ripple and its partners to launch RLUSD, a new stablecoin meant to stabilize XRPL transactions, have given investors reason for cautious optimism. The 5.26% increase in derivatives volume and the 0.21% increase in futures open interest (OI) to $416.1 million both indicated a mixed market mood.
Despite a decline in futures market trading activity, metrics indicate that demand for XRP is still generally high. The Relative Strength Index (RSI) is close to 47.04, which suggests potential turbulence ahead. XRP can see a big price recovery if the RSI enters oversold area.
Furthermore, complicating the current regulatory landscape is the fact that the SEC is asking for $102.6 million following a letter from Terraform Labs Ripple, as CNF previously reported.
