XRP Whale Activity Surges Amid Market Fluctuations
In recent months, the XRP market has witnessed significant movements, primarily driven by prominent holders. Since the beginning of April, these so-called “whales” have collectively divested over 370 million XRP tokens as the cryptocurrency strives to maintain its position above the critical $2 threshold.
Whale Activity and Market Dynamics
An analysis of on-chain data from crypto analytics provider Santiment reveals that wallets containing between 100,000 to 1,000,000 XRP have experienced a consistent decline in their balances. This trend aligns with increased price volatility that has characterized the XRP market since early April.
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At the current valuation of XRP, these divested tokens are worth approximately $765 million. This significant sell-off hints at a lack of confidence among large investors, which could contribute to market instability.
Impact on Market Behavior
Historically, a reduction in whale holdings often results in heightened selling pressure, potentially curtailing upward price momentum or even triggering corrections. Such actions may also influence retail investors to follow suit, amplifying the selling trend.
XRP Price Reaction and Market Speculation
Interestingly, Santiment’s data indicates that whale wallet balances have decreased even as XRP reached a monthly high of $2.23. This suggests a distribution phase, where these significant players are offloading their holdings. The precise destination of these tokens remains uncertain, but the transactions coincide with increased speculation surrounding a potential spot XRP exchange-traded fund (ETF).
Noteworthy transactions have been reported, with one XRP whale transferring over $60 million to Coinbase on April 15, suggesting further sell-side pressure. This follows another major transaction, where Whale Alert highlighted a shift of 131 million XRP (valued at $273 million) between two anonymous wallets.
XRP Price Analysis and Market Outlook
As of the last update, XRP was trading at $2.08, experiencing a daily decline of over 3%, yet it has gained 13% over the past week, holding firm above the important $2 psychological barrier.
Despite these large movements potentially signaling additional downward pressure, XRP currently exhibits moderate volatility at 8.26%. Its relative strength index (RSI) stands at 49.20, indicating a neutral market momentum. However, short-term weakness persists as the cryptocurrency trades below its 50-day simple moving average (SMA) of $2.27. Nevertheless, it remains above the 200-day SMA of $1.88, suggesting that the overall bullish trend is still in play.
