Kelvin Testimony Amachree
XRP, a cryptocurrency under close scrutiny by the crypto community, has seen significant activity in its whale wallets. This movement has sparked concerns about a possible price drop that could have a notable impact on the market.
In January 2018, XRP hit an all-time high of $3.317, but has struggled to reach that level since. The ongoing legal battle between the SEC and Ripple has been a key factor in XRP’s lackluster performance, despite strong community backing. Nevertheless, recent developments in the legal proceedings have mostly favored Ripple, raising hopes of a potential resolution.
However, a recent transfer of 703 million XRP tokens valued at $305 million from a whale wallet to two exchanges, Bitstamp and Bitso, has raised alarms. The transfer, identified by Whale Alert, shows the whale moving 337 million XRP tokens worth $146 million to Bitstamp and 365 million XRP tokens worth $158 million to Bitso. Although the whale has not yet sold these tokens, the transfer suggests a possible price decrease that could lead to significant market instability.
When examining XRP’s monthly chart, it is evident that the price has dropped below the 20 and 50 moving averages (MAs) and is currently supported only by the 100 MA. If the whale decides to sell these tokens, it may further drive down the price, with the closest support level at $0.169. The weekly chart reflects a similar pattern, with the price falling below all three MAs, which are now acting as resistance levels.
From November 2022 to April 2024, XRP saw an upward trend, but it has since dipped below the trend line and all moving averages. The Relative Strength Index (RSI) stands at 36.70, indicating an oversold condition. Despite seeing green candles in the past two days, the whale’s activity still poses a risk of price depreciation.
Data from Defillama indicates a significant decrease in XRP’s trading volume, with considerable drops on platforms like Bitget and Bybit, both witnessing a 62% decline. This decrease in trading volume, coupled with the whale transfer, has raised concerns about XRP’s future price trajectory.
It remains uncertain whether the whale’s move implies an intent to sell or is merely a tactic to unsettle the market. Nonetheless, it is commonly believed that whales transfer coins to exchanges for selling purposes. The future direction of XRP’s price remains uncertain, with conflicting signals across different charts.
The crypto community is closely monitoring XRP’s movements, anticipating a resolution to the SEC vs. Ripple case and a potential price upsurge. However, the recent whale transfer has introduced a layer of ambiguity, leaving many questioning the next steps for XRP. As the market dynamics evolve, one certainty prevails – the price movements of XRP will be under intense scrutiny by all stakeholders.