YEREVAN (CoinChapter.com) – XRP has been turbulent in the previous two weeks, and lost 10% since Jan 1. As a result, the XRP/USD exchange rate dropped to $0.54 in the US session on Jan 18. As CoinChapter has previously predicted, the XRP whales sold, which could be behind the dropping price. More details below.
Large XRP Addresses Flee – What About Ripple
On Jan 17, Whale Alert, a blockchain analysis platform reported two large XRP transactions. They involved the movement of over 46 million XRP tokens to exchanges. Specifically, one of these transactions involved transferring 26.1 million XRP, valued at approximately $14.92 million, from an unidentified wallet to Bitstamp, a cryptocurrency exchange based in Luxembourg.
The additional transaction of 20.1 million XRP, estimated at $11.48 million, originated from an undisclosed source to Bitso, a cryptocurrency exchange based in Mexico. The total value of XRP moved by whales amounted to $26.4 million. These substantial movements could potentially lead to further drops in the price of XRP.
Additionally, crypto research platform Messari backed the findings, signaling a whale exodus. According to the chart below, the ranks of XRP whales, i.e., addresses with large amounts of tokens, have receded since mid-December.
In detail, addresses holding over $10 million and $1 million in XRP tokens dropped to 351 and 1,270, respectively.
Moreover, Whale Alert also reported that Ripple could have initiated the whale dump. On Jan 16, the firm transferred 80 million XRP tokens to an unknown wallet, effectively offloading a significant portion, roughly two-thirds, of its XRP holdings. This action represented a disposal of XRP worth more than $46 million.
Why Are Whales Significant For XRP Price?
Generally, whale behavior could be construed as a ‘canary in the coalmines’ for a larger demographic of retail investors. They can also influence the market by creating selling pressure if they decide to unload some of their holdings.
Were the whales spooked by the Bitfinex attack? On-chain tracker Santiment believed so, saying the FUD is still high.
Following an attempted (but failed) Bitfinex hack using a “Partial Payments Exploit”, there is high negative sentiment toward $XRP. The altcoin’s price performance has been middling in 2024. Along with a low RSI, there is upside while FUD is high.
commented the platform on Jan18.
Could the XRP price drop further? According to technical indicators, if the token loses the current support, it could drop to $0.2, or 60% below the current value.
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