The token price had increased after Judge Analisa Torres initially ruled that XRP programmatic sales do not constitute as securities back in July. The coin's price is now correcting back downward, which is causing large sell-offs of the token as the excitement around the decision has subsided and the United States Securities and Exchange Commission (SEC) has started to fight back.
Even while there have always been significant transactions on the network, it is the destination that has investors on edge. Investors often transfer their tokens to centralised exchanges like Bitstamp in order to sell them. This is due to the fact that centralised exchanges have cheaper costs and more liquidity, both of which assist to lessen the effects of selling.
Whale Transfers 29.3 Million XRP To Exchange On-Chain The whale tracker has detected a transaction using XRP that may put downward pressure on the cryptocurrency's price. A single whale shifted a total of 29.3 million tokens to a controlled exchange, according to a message on X (previously Twitter). The whole stockpile of tokens, which at the time were worth little over $15.13 million, was transferred to the Bitstamp exchange.
Given that the #XRP price briefly fell at the time the transaction was executed, it's probable that the whale has already started selling the coins. But, with such a sizable stockpile, more selling might cause the price to collapse even more, with such sell pressure pushing the price down by as much as 20%.
This bearish scenario is more plausible given the current state of the XRP price, especially given the general negative momentum experienced by the larger crypto market and the difficulty #bitcoin is having recovering. The price of XRP may easily drop to the $0.48 range with one more decline from here.
Is the price of XRP completely lost?
The bulls have not taken the whale's $15 million migration to Bitstamp lying down, despite the fact that it is alarming. A huge buy of $1.5 million worth of XRP was reported on the Bybit exchange a few hours after the transaction was first observed on the blockchain.
The huge purchases caused the XRP price to momentarily rise twice, hitting $0.5311 before falling back down. This indicates that there is strong buying pressure on the digital asset, which may assist to counteract the whale selling.
It's interesting to note that the coin continues to trade above the 200-day moving average, indicating optimistic sentiment at least for the short term. As a result, while a 20% drop might be anticipated as a result of the selling, the digital asset will probably recover quickly.