A whale has moved to dump large quantities of coins into centralized exchanges against the backdrop of the cryptocurrency XRP, backed by Ripple, and is seeing a significant upswing in value. Nearly 52 million coins were dumped on the last day of XRP’s price rebound, according to on-chain statistics. Those wagering on the asset’s future price movement are concerned about this. Let’s investigate the whale behavior and on-chain market data around XRP in more detail.
Whale Dump Raises Pessimistic Fears
Interestingly, large-scale token dumps to exchanges frequently operate as a bearish market element, lowering prices because of an increase in supply. Information disclosed by the on-chain transaction monitoring site Whale Alert indicates that over the previous day, a well-known XRP whale jointly dumped 52.54 million XRP to two CEXs.
A total of 30.04 million XRP, worth $14.53 million, was sent to the cryptocurrency exchange Bitstamp, which is situated in Luxembourg. At the same time, the same whale transferred 22.60 million XRP, or $10.93 million, to the exchange Bitso, which is located in Mexico.
As previously indicated, these trades sparked gloomy views among participants in the crypto market, underscoring a sense of rising selling pressure. However, because of the U.S. CPI data announcement, XRP has traded higher today, confounding expectations from the market and following the general trend of the cryptocurrency market’s recovery.
The Price of XRP Rises
At the time of writing, XRP was trading at $0.4877, up 1.26% from the previous day. The token’s market capitalization was $27.06 billion. Its current daily low is $0.4783, and its peak is $0.4975.
The price increase coincides, however, with a recent upbeat announcement on XRP’s blockchain, the XRP ledger (XRPL). To stabilize transactions inside XRPL, Ripple is discussing launching a new stablecoin called RLUSD.
The derivatives volume increased by 2.90% while the futures OI decreased by 1.55%, indicating a divergent view of the asset’s current market attitude. Investor interest in the asset declined even as trading activity in the futures market sharply increased.
In addition, the RSI was moving close to 38, indicating that the asset is under downside pressure. This could suggest that XRP is about to see erratic movement. But suppose the RSI moves into an oversold area. In that case, there may be a big price increase for the cryptocurrency supported by Ripple shortly.
