XRP, the Ripple-backed cryptocurrency, recently witnessed significant activity as a whale offloaded a substantial amount of coins to centralized exchanges. On-chain statistics revealed that nearly 31 million XRP coins were dumped amid the recent price recovery within the past 24 hours. This action as every other whale activity has equally raised concerns among investors regarding the future price action of the asset.
XRP Whale Activity and Market Impact
Massive token dumps to exchanges are typically perceived as bearish market indicators, as they increase supply and can negatively impact prices. According to data from Whale Alert, an on-chain transaction tracking platform, a well-known XRP whale transferred 30.350 million XRP to two centralized exchanges (CEXs) in the past day.
This significant movement valued at $14.53 million was primarily directed to Bitstamp, a Luxembourg-based crypto exchange, signaling increased selling pressure. These transactions have sparked bearish sentiments among crypto market participants, as such large-scale sales often lead to price declines. The selling pressure created by these dumps can disrupt market equilibrium and lead to heightened volatility.
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Current Market Conditions and Future Prospects
As of the latest update, the price of XRP stands at $0.4872 with a 24-hour trading volume of $661,747,811.30, reflecting a -0.38% decline over the last 24 hours and a -2.04% decline over the past week. With a circulating supply of 56 billion XRP, the cryptocurrency’s market cap is valued at $27 billion. Despite the recent price dip, the market has shown signs of resilience, partly influenced by positive news surrounding the XRP Ledger (XRPL).
Ripple’s discussions to introduce a new stablecoin, RLUSD, aimed at stabilizing transactions within the XRPL, have contributed to a cautious optimism among investors. Additionally, the futures open interest (OI) saw a 0.21% increase, reaching $416.1 million, while the derivatives volume jumped by 5.16%, indicating mixed market sentiments.
These metrics suggest that while trading activity in the futures market has slowed, overall interest in XRP remains robust. The Relative Strength Index (RSI) hovering near 47.04 highlights the downside pressure on XRP, suggesting potential turbulent movements ahead. Should the RSI go up into oversold territory, XRP could experience a significant price rebound.
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The post XRP Whale Dumps 31M Coins Amid Price Dip, What’s Next? appeared first on CoinGape.
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