The XRP price has experienced significant turmoil recently, following an exploit that resulted in Ripple’s co-founder Chris Larsen being hacked and 213 million XRP worth $120 million being stolen. This incident has had a lasting impact on the XRP market, with many whales, or large holders of XRP, choosing to exit their positions. This article analyzes the current state of the XRP market and explores the reasons behind the ongoing decline in price.
On-chain data from whale transaction tracker WhaleAlerts reveals that XRP whales have been actively selling off their holdings in recent weeks. A recent transaction saw 29 million XRP tokens transferred from an unknown wallet to the crypto exchange Bitstamp. This move, along with similar transactions involving large amounts of XRP, demonstrates the growing trend of whales dumping their holdings. This behavior could potentially lead to further declines in the XRP price.
The selling pressure on XRP has been evident in the past week, with the cryptocurrency experiencing a 5.51% decrease in value over a 7-day timeframe. Whale alerts have identified multiple transactions involving large amounts of XRP being sent to Bitstamp, further emphasizing the selling pressure. In one transaction, 28.85 million XRP worth $14.6 million was transferred to Bitstamp. These actions by whales indicate a lack of confidence in the market and could indicate a possible downward trend in the near future.
On-chain data from Santiment Supply by Addresses metric provides additional evidence of whales reducing their holdings. This metric tracks the number of wallet addresses holding more than 1 million XRP tokens. The data shows a steady increase in the number of these addresses until January 28, when the figure reached 1,986. However, by February 3rd, this number had dropped to 1,957, indicating that 29 whale wallets had decreased their holdings. The current number of whale wallets stands at 1,962, further supporting the notion of reduced confidence in the XRP market.
XRP Price Volatility
The XRP price has experienced significant volatility in recent weeks. Following news of the hack, XRP crossed below $0.5 for the first time since October. Despite a slight recovery from $0.49, the cryptocurrency is currently trading at the $0.50 level. The 24-hour trading volume has increased by 27.43%, but the price has failed to post any substantial gains during this period, with a 0.35% decline. Looking at the larger timeframe, XRP has experienced a 10.6% decrease in value over the past 30 days, with a clear formation of lower highs and lower lows. If the selling pressure continues and the minor support at $0.501 fails, it is possible that XRP could break below and form a lower low around $0.48.
Opportunity for Accumulation
Despite the ongoing decline in the XRP price, some analysts, such as EGRAG CRYPTO, suggest that this presents an opportunity to accumulate more tokens. EGRAG CRYPTO remains bullish on XRP and predicts that the price could spike to $22 in the near future. However, it is important to note that investing in cryptocurrency carries risks, and individuals should conduct their own research before making any investment decisions.
The XRP price continues to face significant downward pressure as whales dump their holdings and exit the market. On-chain data and recent transactions indicate a lack of confidence among large holders of XRP. The price of XRP has experienced volatility and shown a clear formation of lower highs and lower lows. Whether this decline presents an opportunity for accumulation or signifies a larger market trend remains uncertain. Individuals considering investing in XRP should exercise caution and conduct thorough research before making any decisions.
