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- XRP whales dump 50 million tokens, sparking market speculation.
- Analysts maintain a bullish outlook despite bearish trends.
The cryptocurrency market is still paying attention to the Ripple Labs crypto, XRP. The cryptocurrency is now valued at $0.5277 on CoinMarketCap, slightly up 0.19% over the last day. Having fallen 1.28% in the previous week, it is still in a bearish position nonetheless. Traders and investors in the cryptocurrency industry are speculating a lot about its future price trajectory because of this slow pace.
Effect of Whale Activity on XRP
Further affecting tokenomics is the recent dump of about 50 million coins by a well-known XRP whale to an exchange amid the erratic price movement of the Ripple-backed token.
This large decline has stoked conjecture regarding XRP’s chances of hitting the much-anticipated $1 price target. Under the handle Rzn, the whale has kept dumping large volumes of tokens to Bitstamp and Bitso exchanges.
About 50 million tokens were recorded to have been offloaded in the last 24 hours, according to data released by the on-chain transactions monitoring tool Whale Alert. With the first transaction, Bitstamp received 29.28 million XRP, or $15.40 million. Concurrently, Bitso received 19.88 million XRP, or $10.45 million.
Supply Pressure and Price Obstacles
These transactions highlight increasing supply pressure on exchanges for the Ripple-backed asset, which in turn prevents the price of XRP from rising. Further obscuring potential price swings are on-chain and technical statistics. To further compound the uncertainties, a prior CNF post mentioned an analyst’s technical analysis-based forecast that XRP’s price may fall by more than 80% from its present levels.
Reputable crypto market experts Dark Defender and Egrag Crypto, in the meantime, have stuck to their positive prediction that XRP will soon surpass $1. For XRP investors, their confidence gives some hope despite the market difficulties and pessimistic attitude.
Coinglass data, which shows a 4.07% increase in open interest (OI) to $639.03 million while derivatives volume decreased 26.57% to $718.00 million, explains the wild swing of XRP. This information highlights lower market activity for the asset, even as fresh capital entered the futures market, suggesting some investor interest in spite of the slow price movement.
