Home CryptocurrencyAnalysis Massive whale transfer worth $29.3 million threatens XRP price with more selling pressure

Massive whale transfer worth $29.3 million threatens XRP price with more selling pressure

by SuperiorInvest

The price of This appears to have further spooked a depleting whale account base, as on-chain data points to XRP whales already exiting their positions in recent weeks.

In particular, on-chain data from whale transaction tracker WhaleAlerts points to a recent transactionn of 29 million XRP tokens transferred from an unknown wallet to Bitstamp crypto exchange.

Bulk XRP Whale Transfer to Crypto Exchange

The actions of whales or large cryptocurrency holders always seem to reveal the nature of the overall market sentiment. XRP, for example, has been under selling pressure this past week as the cryptocurrency is currently down 5.51% over a 7-day period.

However, recent data point to continuous selling pressure in the short term. For example, according to whale alerts, 29 million XRP worth $14.7 million was sent to Bitstamp. Similarly, 28.85 million XRP worth $14.6 million was sent to Bitstamp in another transaction. The nature of these transactions likely indicates that whales are unloading their holdings, and moves like this could portend further declines.

On-chain data from the Santiment Supply by Addresses metric, which tracks the number of wallet addresses holding more than 1 million XRP tokens, tells a similar story. According to this metric, the number of addresses in this category saw a steady increase, reaching 1,986 on January 28. This figure fell to 1,957 on February 3, indicating that 29 whale portfolios reduced their holdings during this period. At the time of writing, the metric stands at 1,962 wallets.

Source: Santiment

Will XRP price selling pressure continue?

XRP recently crossed below $0.5 for the first time since October after news of the hack broke. However, the price has since recovered slightly from $0.49 and is trading at the $0.50 level at the time of writing.

Despite seeing a 27.43% increase in trading volume, XRP price has failed to register gains in the last 24 hours and is down 0.35%. Over a broader time frame, the cryptocurrency is down 10.6% in 30 days, with the price movement indicating the formation of lower highs and lower lows. Consequently, if the selling pressure continues and the current minor support at $0.501 does not hold, XRP could fall below to form a lower low around $0.48.

According to the cryptanalyst EGRAG CRYPTO, known for its bullish stance on XRP, the current drop is a perfect opportunity for accumulate more tokens while suggesting that the price of XRP could rise to $22 very soon.

XRP price chart from Tradingview.com

XRP price struggles amid unfavorable market headwinds | Source: XRPUSD on Tradingview.com

Featured image from U.Today, chart from Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC’s views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.

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