Despite the overall cryptocurrency market showing signs of recovery today, Ripple-backed asset XRP continues to experience volatile price fluctuations. While Bitcoin and altcoins such as ETH, SOL, and BNB have risen, XRP has fallen. The reason behind this price drop is a large amount of whale speculation, with 52 million XRP placed on two CEXs. Here we provide a brief look at whale activity over the past day and how XRP’s on-chain data may affect future price movements.
Whale sells 52 million coins to CEX
In several posts by X’s Whale Alert, it was noted that a well-known XRP whale, Rzn, moved a total of 52.27 million XRP (worth $24.95 million) across two exchanges in the past day. Through two transactions, the whale sold 30.65 million XRP and 21.62 million XRP to Bitstamp and Bitso, respectively.
These transactions underscore the impression of growing selling pressure on the asset and are in line with today’s lackluster price movement. Notably, a previous report by CoinGape Media further noted lackluster XRP price movement in tandem with this whale dumping on the same exchange.
There has been speculation that the address may be related to Ripple, but no concrete evidence has been presented to prove that. Incidentally, the dump from this address emerged shortly after Ripple strategically acquired a stake in Bitstamp, a recurring phenomenon in the cryptocurrency industry.
Meanwhile, XRP dealt with price fluctuations and fell after a notable trading session in the green territory.
Related article: XRP supply on exchanges falls to multi-month low, price hits bottom?
XRP Price Drop
At the time of writing, the price of XRP is down 0.51% and is currently trading at $0.4731. The token’s 24-hour low and high were $0.4724 and $0.4795, respectively.
Data from Coinglass led to investor optimism as XRP futures OI rose 1.96% to $586.25 million. However, derivatives trading volume fell 48.82% to $578.55 million. This uncertainty in the derivatives market could be a potential catalyst for XRP price volatility.
Moreover, the RSI is valued at 38, suggesting downward pressure on the asset. Further downward momentum could take the token into the oversold territory, paving the way for a potential price rebound.
Additionally, a recent report by CoinGape Media further highlighted the massive whale accumulation of XRP, tilting the long-term price outlook in a bullish direction.
Also read: PepeCoin Whale Sparks Concerns After Transferring 1 Trillion Pepe to Binance, What’s Next?
