A recent sell-off of over 100 million XRP tokens by major holders has resulted in significant selling pressure on the price of XRP. Data from on-chain analysis shows a decrease in the overall supply held by addresses with 100,000-1,000,000 coins. This selling activity by “whales” or large holders often leads to smaller holders following suit and further driving down the price.
Whales tend to sell their holdings after price surges and buy back in during pullbacks, while retail investors tend to buy in at the top. It is speculated that XRP whales are taking profits following the recent pump in price after news of a partial victory in the SEC case. The price of XRP rose over 70% in less than 24 hours but has since declined about 15% from its yearly high. Data also indicates that the price decline coincided with the selling activity of XRP whales two weeks ago.
This sell-off is reminiscent of a similar situation in June when whales dumped around 120 million XRP after Ripple unlocked escrowed tokens. It is expected that such sell-offs will trigger more selling and result in price volatility and fluctuations as the market absorbs the increased token supply.
Despite these fluctuations, XRP’s price has remained relatively strong compared to the overall market, with whales reportedly amassing over $500 million in XRP since February in anticipation of positive developments within the XRP ecosystem. Ripple, the company behind XRP, is focusing on the tokenized assets market in hopes of unlocking value in the global financial system.
However, Ripple’s partial victory in court may face an appeal from the SEC, which could negatively impact the price of XRP and potentially wipe out the altcoin’s recent gains. XRP is currently trading at $0.6253, showing a 31.52% increase over the past 30 days.
1. What caused the price decline in XRP?
The price decline in XRP was triggered by large holders, known as whales, selling off over 100 million tokens. This selling activity put significant selling pressure on XRP and led to a decline in its price.
2. Why do whales sell their holdings after price jumps?
Whales tend to sell their holdings after price surges to take profits. They anticipate a pullback in the price and buy back in at a lower price, maximizing their gains.
3. How has XRP performed compared to the overall market?
Despite price fluctuations, XRP has performed relatively well compared to the overall market. Whales have reportedly amassed over $500 million in XRP since February, anticipating positive developments within the XRP ecosystem.
4. What could negatively impact the price of XRP in the future?
Ripple’s partial victory in court may face an appeal from the SEC, which could have a negative impact on the price of XRP. If the appeal is successful, it could lead to a downtrend in XRP’s price and potentially erase its recent gains.
The selling activity of large XRP holders, known as whales, has resulted in a decline in the price of XRP. This sell-off comes after a period of price surges and a partial victory in the SEC case. XRP whales may be taking profits, leading to a cascade of selling among smaller holders. Despite these fluctuations, XRP has performed relatively well compared to the overall market, with whales amassing significant amounts of XRP in anticipation of positive developments. However, Ripple’s legal battle with the SEC may impact the price of XRP in the future.