The Ripple-backed token, XRP, again birthed a tidal wave of speculations across the broader crypto market today as it noted two massive whale dumps to centralized exchanges. These whale transfers promptly nabbed crypto market enthusiasts’ attention as XRP’s price dipped below the $0.54 mark, a target much stressed by analysts.

Meanwhile, amid the immense curiosity sparked by Brad Garlinghouse’s positive stance on a potential XRP ETF, the token’s bearish movement birthed additional inferences among crypto market traders and investors for XRP’s price action ahead. The derivatives data offered by Coinglass further stirred speculations over short-term price volatility for XRP, with a dip in volume but a jump in open interest.

XRP Whale’s Offloading: A Closer Look

According to the data revealed by the blockchain tracker Whale Alert, the two whale transactions, as mentioned above, collectively shifted nearly 59 million XRP to two centralized exchanges. The first transaction showcased the transfer of 26.5 million XRP to Bitstamp, a Luxembourg City-based CEX. Whereas, the second transaction showcased the moving of 28.35 million XRP to Bitso, a Mexico city-based CEX.

Intriguingly, these transfers were made by an unknown wallet,…Rzn, which has also been previously recorded making similar transactions. Notably, following Ripple’s strategic stake acquisition in the aforementioned CEXs, these transactions hovered over the crypto horizon, positioning as a recurring phenomenon. As reported by CoinGape Media earlier, the same wallet dumped millions of XRP to Bitstamp and Bitso over the past few days, piquing the interests of crypto market enthusiasts.

In the interim, XRP appears to be mirroring usual market sentiments of a drop in price with massive dumps to exchanges. As the whale’s dump significantly increases the token’s supply, traders and investors usually expect a bearish turn.

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XRP Price Tumbles

As of writing, the XRP price showcased a drop of 1.11% over the past 24 hours and is currently trading at $0.5377. The token’s trading below the $0.54 mark has echoed a sense of frenzy within the broader crypto market as analysts spotlighted this as a crucial support level for XRP.

Meanwhile, the derivatives data showcased a 1.34% jump in open interest, reaching $678.82M, but a 28.84% drop in volume, reaching $1.01B. This hints at comparatively few contracts actively being traded while many are open in the derivatives market. The Ripple-backed token’s bearish turn further supports this sentiment, with investors potentially excising caution. However, with the short-term liquidity scenario coming into play, a price action shift may be imminent.

Also Read: Bitcoin Halving to Push BTC Price At $273K, Demand-Supply Ratio At 13x

The post XRP Whale Dumps 59 Mln Tokens Amid Drop Below $0.54, What’s Next? appeared first on CoinGape.

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