The decline in the price of XRP continues as it dropped below $0.49 after surging above $0.51 on Monday. This downward trend has raised concerns among holders as they try to understand the source of this selling pressure. One factor that has caught the attention of the XRP community is the large transfers made by Ripple, the company behind XRP.
On Monday, two significant transactions from Ripple raised eyebrows. The first transaction involved the transfer of 75 million XRP tokens worth $36.92 million to an unknown wallet. Speculations suggest that this transfer may have been part of an over-the-counter (OTC) deal with a private owner.
The second transaction that raised concerns was the transfer of 30 million XRP tokens worth approximately $14.95 million to the Bitstamp crypto exchange. This transfer to an exchange, where tokens are typically sold, further fueled speculation that Ripple is selling its holdings.
It is worth noting that large transfers between Ripple and Bitstamp are common, as Bitstamp is one of Ripple’s On-Demand Liquidity (ODL) services. These large transactions between the two entities are a result of their business relationship.
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However, the XRP price has been heavily impacted by this selling pressure, leading to a decline in trading interest. The daily trading volume for XRP dropped by almost 26% between Tuesday and Wednesday, and its market cap decreased by 0.33% in the same period.
The price of XRP is highly correlated with the overall cryptocurrency market. As the bullish momentum in the market slows down, so does the XRP price. However, if the Bitcoin price rallies again, it is likely that XRP will follow suit and potentially break the $0.5 mark once more.
Currently, the XRP price sits at $0.4881, showing a 0.91% drop in the last day but an overall increase of 0.89% on the 7-day chart. Despite the recent decline, XRP remains the sixth-largest cryptocurrency in the market, with a market cap of $26 billion.
It is important to analyze the charts to better understand the price movements of XRP. According to data from Coinmarketcap, the XRP price chart shows a struggle at $0.48. This indicates that the asset is facing resistance at this level, which may require a significant push from the market to break through.
It is also crucial to consider external factors that may affect the price of XRP. The overall sentiment in the crypto market, as well as the regulatory landscape, can have a significant impact on XRP’s performance. Traders and investors should stay updated with the latest news and developments to make informed decisions.
In conclusion, the recent decline in the price of XRP is a result of selling pressure, partly attributed to large transfers from Ripple. However, the correlation between the XRP price and the general crypto market suggests that a rally in Bitcoin could potentially lead to a recovery for XRP. Traders and investors should closely monitor market trends and news to navigate the XRP market effectively.
