XRP, which Ripple Labs supports in cryptocurrencies, is still quite popular. The token’s price, which is presently rising slowly, has sparked speculation among investors and traders in the cryptocurrency market about where it will eventually go.
Notably, a well-known XRP whale dumped about 50 million coins to an exchange during the wild price swings the Ripple-backed currency experienced, which further affected tokenomics. Due to the whale’s persistent large-scale token dumps to exchanges, traders in the cryptocurrency space are still speculating over whether the Ripple-backed coin will hit the much-anticipated $1 price target.
XRP Whale Dump: A Cautionary Tale
Insights from the on-chain transaction tracking tool Whale Alert indicate that close to 50 million tokens were offloaded in the last day and a half. According to the data, the well-known Ripple whale with the address Rzn was reportedly dumping the sum above on CEXs Bitstamp and Bitso.
In the initial transaction, 29.28 million XRP, or $15.40 million, were sent to Bitstamp. Concurrently, the second transfer showed that Bitso was receiving 19.88 million XRP, or $10.45 million.
These transactions highlight the growing demand for the Ripple-backed asset on exchanges, which in turn creates a barrier to the price pump of Ripple. On-chain and technical statistics further obscure future price swings for the cryptocurrency.
Meanwhile, prominent cryptocurrency market analysts Dark Defender and Egrag Crypto, as reported by media, have persisted in maintaining their optimism on XRP’s imminent $1 peak.
The price of XRP fluctuates around $0.52. Why is that?
XRP’s weekly chart indicates that the coin consolidates between the $0.51 and $0.54 price levels, per CoinMarketCap data. The coin backed by Ripple was trading at $0.5299 as of this writing, up 0.94% from the previous day. Moreover, $0.5226 and $0.5326 were recorded as the 24-hour lows and highs.
Data from Coinglass helped explain Ripple’s erratic movement. While the derivatives volume decreased 26.57% to $718.00 million, the OI increased 4.07% to $639.03 million. This data showed that there was less market activity for the asset but still some investor interest despite the slow price movement as new money entered the futures market.
In addition, the RSI stayed close to 51, indicating that the asset is not overbought nor oversold. The data points to the token waiting to be taken over by bulls or bears.
The FIT21 cryptocurrency bill and the regulatory uncertainty raised by the Ripple v. SEC litigation further complicate the murky picture of XRP’s potential future price fluctuations.
