When Judge Analisa Torres ruled in July that XRP’s programmatic sales were not securities, the token’s value soared, promising brighter days for the XRP community. However, as the initial enthusiasm surrounding the verdict dissipates and the US Securities and Exchange Commission (SEC) mounts its counteroffensive, XRP’s price grapples with a downward correction, catalyzing sizable token sell-offs.
A recent alert from an on-chain whale tracker has heightened concerns about potential bearish pressure on XRP’s price. The tracker detected a noteworthy transaction wherein a single whale transferred a substantial 29.3 million XRP tokens, valued at approximately $15.13 million at the time, to the Bitstamp exchange. Such massive transfers to centralized exchanges often precede sell-offs, as these platforms offer traders lower fees and enhanced liquidity, facilitating smoother token liquidation.
As the transaction transpired, the XRP price experienced a swift dip, hinting at the possibility that the whale might have initiated a selling spree. Given the magnitude of the transfer, a sustained selling spree could inflict a sell pressure-induced decline of up to 20%, compounding the challenges already facing XRP’s price.
This scenario grows even more plausible considering the broader crypto market’s recent negative momentum and Bitcoin’s ongoing struggle to regain footing. Should XRP succumb to further downward pressure, it could plummet to the $0.48 range, exacerbating the token’s existing struggles.
Nonetheless, the crypto landscape is always balanced. Despite the ominous signs, the bullish camp is yielding ground with a fight. Shortly after the massive whale transaction emerged on the blockchain, an impressive buy order worth $1.5 million in XRP surfaced on the Bybit exchange. This sudden influx of buying activity triggered a pair of rapid spikes in XRP’s price, pushing it briefly to $0.5311 before retracing.
Substantial buy pressure indicates a potential counterforce to balance out the selling impact from the whale transaction. Notably, XRP’s current position above the 200-day moving average suggests enduring bullish sentiment, particularly in the medium term. Consequently, while a 20% dip might loom due to the selling pressure, the downtrend could be transient before the digital asset regains its upward trajectory.
As XRP navigates these tumultuous waters, the market eagerly awaits the unfolding dynamics, tracking how the coin’s community and external factors shape its journey. The delicate equilibrium between bearish pressure and bullish support paints a vivid picture of the complexities inherent in the crypto realm, offering valuable insights into the resilience and potential future movements of XRP.