While many XRP investors rejoiced when Judge Analisa Torres declared that XRP programmatic sales do not qualify as securities, the euphoria has since faded. The United States Securities and Exchange Commission (SEC) has taken action, and as a result, the coin’s price is experiencing a correction and witnessing massive sell-offs. The recent movement of 29.3 million XRP tokens to a centralized exchange has raised concerns among investors and is putting additional bearish pressure on the cryptocurrency’s price.
Notable transactions involving large amounts of XRP tokens are not uncommon, but the destination of this particular transaction is what has sparked worry. The tokens, which were valued at over $15.13 million, were transferred to the Bitstamp exchange. Typically, investors move tokens to centralized exchanges like Bitstamp in order to sell them, taking advantage of lower fees and deeper liquidity. The possibility of the whale already selling the tokens is likely, as the XRP price experienced a quick decline around the time of the transaction. With such a large supply of tokens potentially hitting the market, the sell pressure could lead to a significant drop of up to 20% in the XRP price.
The XRP price is already facing challenges, and the bearish scenario becomes more probable considering the overall negative momentum in the broader crypto market. Bitcoin, the leading cryptocurrency, is struggling to recover, adding to the downward pressure on XRP. If another dip occurs, the XRP price could easily fall into the $0.48 territory, further exacerbating the sell-off.
Despite the concerns raised by the large whale transaction, the bulls in the market are fighting back. Soon after the transaction was spotted on the blockchain, a substantial buy of $1.5 million worth of XRP was reported on the Bybit exchange. This sudden surge in buying activity resulted in two quick spikes in the XRP price, briefly reaching $0.5311 before retracing. The significant buy pressure exhibited by these purchases suggests that there is a substantial amount of demand for XRP, which could help offset the selling pressure caused by the whale transaction.
Despite the ongoing sell-off, XRP remains above its 200-day moving average, indicating a bullish sentiment in the mid-term. While a 20% decline is likely due to the selling pressure, the decline is not expected to last long, as buyers are expected to step in and support the price.
The future of XRP hangs in the balance as the sell-offs continue. Investors are closely monitoring the movements in the market and the actions of the SEC. The outcome of these developments will have a significant impact on the XRP price in the coming weeks and months. For now, investors must brace themselves for potential volatility and remain cautious in their trading decisions.
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