The XRP market is experiencing a rollercoaster ride as a major whale, continues to offload their XRP holdings. This large-scale transfer has cast a long shadow, pushing the price down significantly. In recent days, XRP has plummeted to as low as $0.5, mirroring the broader market correction that saw Bitcoin slip to the $61,000 mark.
As tracked by blockchain tracker Whale Alert, there was a hefty transfer of 24.6 million XRP, valued at a staggering $14.84 million, to Bitstamp, a centralized exchange located in Luxembourg City. This movement of such a large amount of XRP likely fueled fears of a potential sell-off, contributing to the price decline.
This undeniable major whale activity indeed impacted XRP’s price, dropping as low as $0.5658 on March 20th. However, XRP has since rebounded, currently trading at $0.60 at the time of writing. This recovery aligns with the overall crypto market’s market cap rebound, shifting from a decline of -4.22% to -0.28%, which has instilled positivity among investors.
Delving further into market data, Coinglass‘s derivatives information displays a mixed outlook. The chart shows an increase in open interest (OI) to $815.56 million. Open interest represents the total value of active futures contracts, and its increase signifies growing interest in XRP futures trading. On the other hand, trading volume has decreased by 32.76% over 24 hours. The reduced trading volume suggests diminished market activity, implying a potential withdrawal of investors from the XRP market.
Technical indicator Relative Strength Index (RSI), is currently hovering around 44 for XRP. While this figure doesn’t conclusively indicate an oversold or overbought state, it does suggest a leaning towards oversold territory. This observation corresponds with the prevalent selling pressure evident in the market.
XRP’s volatile price swings driven by major whale activity, coupled with the broader market correction and conflicting signals from technical indicators, raise concerns for XRP investors and enthusiasts. As the cryptocurrency market navigates through these turbulent conditions, it is crucial to closely monitor XRP’s price movements and anticipate the potential ripple effects across the entire digital asset landscape.
Also See: Peter Schiff Slams MicroStrategy’s Massive Bitcoin Acquisition!