XRP Whales Dump 130M Tokens, Market Braces for Volatility

XRP Faces Selling Pressure Following Whales Offloading Over 130 Million Tokens, Will Market Stabilize?

XRP, the third-largest cryptocurrency by market capitalization, has experienced significant selling pressure in recent days, with a 26% price decline following the offloading of over 130 million tokens by whales. This dramatic sell-off has not only impacted the price but also altered investor sentiment, suggesting the potential for further price volatility in the coming days.

According to a source from COINOTAG, the current MACD readings imply that sellers continue to dominate the market, reinforcing the bearish sentiment surrounding XRP. The recent activity among whales has significantly impacted XRP’s market performance, with over 130 million XRP dumped within a single day, creating a flood of tokens that quickly eroded investor confidence. This massive sell-off typically triggers panic selling among smaller traders, amplifying the downward price movement.

Compounding the situation, a staggering 100 million XRP, valued at approximately $283 million, was recently unlocked from escrow and sent to an unidentified wallet. This action further contributed to fears regarding potential future sell-offs, leading many to reconsider their investment strategies.

Insights from CryptoQuant reveal that XRP’s decentralized exchange (DEX) buy-sell ratio has remained notably low for the past 16 hours, a clear indication of prevailing selling pressure. Such a low ratio illustrates a lack of buying interest, echoing similar trends observed across centralized exchanges. If the trend of selling continues, further price declines could ensue. It is essential for buyers to re-enter the market to help stabilize XRP’s future trajectory.

Recent data reveal a substantial decrease in the number of active XRP addresses, a sign that trading activity is slowing considerably. A smaller number of active addresses often correlates with reduced liquidity, which can exacerbate price fluctuations given the lower transaction volume. Conversely, a rebound in active addresses could indicate renewed interest from investors, potentially leading to price stabilization.

XRP finds itself in a precarious position as whale activities, along with the unlocking of escrow funds and bearish technical signals, exert significant downward pressure on the market. The MACD further suggests a possible continuation of this bearish trend, while diminishing active addresses and heightened sell-offs solidify the discouraging outlook.

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