- Ripple (XRP) has witnessed significant transaction activity in the last 24 hours, and the transfer of a substantial amount of cryptocurrency to exchanges has sparked speculation about potential selling pressure.
- According to Whale Alert, two notable transactions, involving approximately 54.8 million XRP and worth nearly $30 million, have caught the attention of investors and analysts.
- XRP’s price movement has been downward since its peak of $0.575 on February 20. If the current day closes in the red, the cryptocurrency is preparing for its third consecutive day of losses.
The substantial transfers of XRP have garnered attention; will the transfers to Bitso and Bitstamp create selling pressure on XRP?
High Amount of XRP Transfer Draws Attention
Ripple (XRP) has experienced significant transaction activity in the last 24 hours, with a substantial amount of cryptocurrency transferred to exchanges, leading to speculation about potential selling pressure. According to crypto data monitoring service Whale Alert, two notable transactions involving approximately 54.8 million XRP and worth nearly $30 million have caught the attention of investors and analysts. Given XRP’s market position and its fluctuation around a significant support level, this move holds key importance for the market position of XRP.
Most of the XRP in the transactions was transferred to crypto exchanges Bitso and Bitstamp. Specifically, an unidentified wallet sent around 28,350,000 XRP, approximately $15.5 million, to Bitso, and another wallet transferred 26,500,000 XRP, or around $14.5 million, to Bitstamp. These are substantial transactions both in terms of amount and timing, occurring during a period when XRP is testing a significant support level around $0.53.
XRP’s price movement has been downward since its peak of $0.575 on February 20. If the current day closes in the red, the cryptocurrency is preparing for its third consecutive day of losses. This recent move is part of a larger trading pattern that has been unfolding since the beginning of December when XRP started dropping from $0.7. The 50-day and 200-day moving averages, along with the $0.579 price ceiling, are hindering short-term upward movements for XRP.
Analysis of Potential Outcomes
The transfer of large amounts of Ripple to exchanges can lead to various 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 magnitude of these transactions have led to speculation about major holders possibly liquidating their positions in anticipation of potential price drops.
The immediate impact of these transactions on XRP has been relatively limited. XRP’s price experienced a moderate decline of 1.85% to $0.533 in the last 24 hours. This move is in line with broader market trends, which have also seen declines. A break and close above $0.57 could end the current correction phase and potentially pave the way for a rally towards $0.67. On the other hand, continued declines could lead to XRP testing strong support levels at $0.46, increasing the likelihood of consolidation below $0.57 in the short term.
