Ripple (XRP) has witnessed significant transaction activity in the past 24 hours, with large volumes of the cryptocurrency being transferred to exchanges, sparking speculation about potential sell-off pressure. According to the crypto data tracking service Whale Alert, two notable transactions involving approximately 54.8 million XRP, valued at nearly $30 million, have caught the attention of investors and analysts alike. This movement is pivotal for XRP’s market position as its price hovers around a key support level.

XRP Whale Movements and Market Impact

The transactions contained many XRP moved to crypto exchanges Bitso and Bitstamp. In particular, an unidentified wallet sent 28,350,000 XRP, equal to around $15.5 million, to Bitso, and another wallet transferred 26,500,000 XRP, or about $14.5 million, to Bitstamp. They are massive in quantity and time, as they happen when XRP is testing an important support at $0.53.

28,350,000 #XRP (15,504,917 USD) transferred from unknown wallet to #Bitsohttps://t.co/aPBncpv0VT

— Whale Alert (@whale_alert) February 22, 2024

The price trajectory of XRP has been downwards from a peak of $0.575 on February 20. If the current day closes in the red, the cryptocurrency is poised to print its third day of losses. This recent move is also part of a bigger trading pattern that has been developing since early December, when XRP started its decline from $0.7. The 50-day and 200-day moving averages and a price ceiling at $0.579 prevent XRP from moving higher in the short term.

Analyzing the Potential Outcomes

The movement of large volumes of Ripple to exchanges can have multiple interpretations. While such transfers are often associated with selling intentions, they can also serve other purposes, such as staking or participating in reward programs. However, the timing and scale of these transactions have led to speculation about increased sell-off pressure, with large holders possibly looking to liquidate their positions in anticipation of further price declines.

Despite the significant amount of XRP in these transactions, their immediate impact on the market has been relatively muted. XRP’s price experienced a modest decline of 1.85% over the last 24 hours to $0.53373075. This movement aligns with broader market trends, which have also seen declines. A break and close above the $0.57 mark could signal an end to the current correction phase, potentially paving the way for a rally toward $0.67. Conversely, continued declines could see Ripple’s price testing strong support levels at $0.46, with consolidation below the $0.57 threshold appearing more likely in the near term.

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Filed under: News - @ January 1, 1970 12:00 am