XRP Price Faces Immense Sell Pressure That Could Trigger 20% Decline

Back in July when Judge Analisa Torres first declared XRP programmatic sales do not qualify as securities, the token price had rallied. However, now that the euphoria from the ruling has worn off and the United States Securities and Exchange Commission (SEC) has begun to fight back, the coin’s price is correcting back downward, prompting massive sell-offs of the token.

Whale Moves 29.3 Million XRP To Exchange

On-chain whale tracker has flagged an XRP transaction that could spell bearish pressure for the price of the cryptocurrency. According to the post made on X (formerly Twitter), a single whale moved a total of 29.3 million tokens to a centralized exchange. The total stash of tokens which were worth a little over $15.13 million at the time were transferred to the Bitstamp exchange.

While large transactions like these are not new on the network, the destination is what has raised concerns among investors. Usually, when investors move tokens to centralized exchanges such as Bitstamp, it is to sell their tokens. This is because centralized exchanges offer lower fees and deeper liquidity, which also help to mitigate the impact of the selling.

It is possible the whale has already begun selling the coins as the XRP price saw a quick dip around the time the transaction was made. But with such a large stash, further selling could see the price fall further with such sell pressure leading to as much as a 20% decline.

Since the XRP price is already struggling, this bearish scenario becomes more likely, especially with the broader crypto market seeing widespread negative momentum and Bitcoin struggling to recover. Another dip from here would easily see the XRP price fall to the $0.48 territory.

Token price struggles amid sell-off | Source: XRPUSD on Tradingview.com

Is All Hope Lost For XRP Price?

Although the large $15 million move by the whale to Bitstamp is concerning, the bulls have not taken it lying down. A couple of hours after the transaction was first seen on the blockchain, a massive buy of $1.5 million worth of XRP was reported on the Bybit exchange.

The large buys led to two quick spikes in the XRP price, reaching $0.5311 briefly before going back downward. This signifies that there is a good amount of buy pressure on the digital asset that could help offset the whale selling.

Interestingly, the token is still holding above the 200-day moving average which suggests bullish sentiment, at least in the mid-term. So while a 20% can be expected due to the selling, the decline will likely not last before the digital asset picks back up.

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com

Source link: https://www.newsbtc.com/analysis/xrp/xrp-price-20-decline/




6 Innovative Practices In The Early 20th Century That Skyrocketed The Ford Motor Company To Success

Tech startup founders usually draw their lessons from the history of the information technology industry. However, companies have been innovating technologically for much...

Our Favorite Books We Read in 2022

There were so many books that captured our attention throughout the course of 2022, both fiction and nonfiction. Today we’re sharing our absolute...

All Blacks lock Tuipulotu flown home to NZ and facing weeks on sideline

Blues Captain Patrick Tuipulotu is set to return to New Zealand for surgery after suffering a fracture to his jaw in a...

Snowflake, Nvidia partner to enable generative AI app development in the Snowflake Data Cloud

Join top executives in San Francisco on July 11-12, to hear how leaders are integrating and optimizing AI investments for success. Learn More Snowflake and Nvidia have...

Frances Tiafoe gets brutally honest on ‘depressing’ showing against Grigor Dimitrov

Frances Tiafoe gets brutally honest on 'depressing' showing against Grigor Dimitrov (Provided by Tennis World USA) World No 10 Frances Tiafoe didn't mince words...