XRP Whale Sells 31 Million Coins, Sparking Concerns in the Market
Following a communication from Terraform Labs, the SEC is seeking $102.6 million from Ripple, adding another layer to the regulatory challenges faced by XRP.
The recent surge in whale activity within the XRP ecosystem, supported by Ripple, has left investors uneasy. In a single day, a whale unloaded nearly 31 million XRP tokens onto centralized exchanges, casting doubts on the future price trajectory of the asset amidst a recent price recovery.
Whale Activity and Market Impact
Massive token dumps onto exchanges typically signal an increase in supply and a potential drop in prices, often viewed as bearish indicators in the market. Whale Alert reported that a prominent XRP whale transferred 30.350 million XRP to Bitstamp within the past day, totaling $14.866 million.
The significant movement was primarily directed towards Bitstamp, a cryptocurrency exchange based in Luxembourg. Such large sales tend to trigger price declines, leading to a sense of pessimism among cryptocurrency market participants. The dumping of tokens can disturb market equilibrium and heighten volatility.
Despite XRP currently trading at around $0.495, showing a 1.13% increase in the previous day, the overall trend remains bearish with a 0.19% dip over the last week. With a market cap of $27.54 billion and 56 billion XRP in circulation, positive news surrounding the XRP Ledger (XRPL) has helped maintain some resilience in the market despite recent price setbacks.
Positive Developments and Investor Sentiments
Discussions between Ripple and its partners regarding the launch of RLUSD, a new stablecoin designed to stabilize XRPL transactions, have instilled cautious optimism among investors. Derivatives volume saw a 5.26% uptick, while futures open interest (OI) rose by 0.21% to $416.1 million, reflecting a mixed sentiment in the market.
Although futures market trading activity has slightly declined, demand for XRP remains strong based on key metrics. The Relative Strength Index (RSI) hovering around 47.04 indicates potential volatility ahead. If the RSI enters the oversold territory, XRP could witness a significant price rebound.
Adding complexity to the regulatory landscape is the SEC’s request for $102.6 million following correspondence from Terraform Labs Ripple, as previously documented by CNF.
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