XRP Price Faces Immense Sell Pressure That Could Trigger 20% Decline
August 25 2023 - 07:00PM
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Back in July when Judge Analisa Torres first declared XRP
programmatic sales do not qualify as securities, the token price
had rallied. However, now that the euphoria from the ruling has
worn off and the United States Securities and Exchange Commission
(SEC) has begun to fight back, the coin’s price is correcting back
downward, prompting massive sell-offs of the token. Whale Moves
29.3 Million XRP To Exchange On-chain whale tracker has flagged an
XRP transaction that could spell bearish pressure for the price of
the cryptocurrency. According to the post made on X (formerly
Twitter), a single whale moved a total of 29.3 million tokens to a
centralized exchange. The total stash of tokens which were worth a
little over $15.13 million at the time were transferred to the
Bitstamp exchange. Related Reading: Ethereum Whales Ready For Next
Leg-Up After Buying 56,000 ETH 🚨 29,300,000 #XRP (15,130,884 USD)
transferred from unknown wallet to #Bitstamphttps://t.co/DhcHkKNdzc
— Whale Alert (@whale_alert) August 24, 2023 While large
transactions like these are not new on the network, the destination
is what has raised concerns among investors. Usually, when
investors move tokens to centralized exchanges such as Bitstamp, it
is to sell their tokens. This is because centralized exchanges
offer lower fees and deeper liquidity, which also help to mitigate
the impact of the selling. It is possible the whale has already
begun selling the coins as the XRP price saw a quick dip around the
time the transaction was made. But with such a large stash, further
selling could see the price fall further with such sell pressure
leading to as much as a 20% decline. Since the XRP price is already
struggling, this bearish scenario becomes more likely, especially
with the broader crypto market seeing widespread negative momentum
and Bitcoin struggling to recover. Another dip from here would
easily see the XRP price fall to the $0.48 territory. Token price
struggles amid sell-off | Source: XRPUSD on Tradingview.com Is All
Hope Lost For XRP Price? Although the large $15 million move by the
whale to Bitstamp is concerning, the bulls have not taken it lying
down. A couple of hours after the transaction was first seen on the
blockchain, a massive buy of $1.5 million worth of XRP was reported
on the Bybit exchange. 🚀🔥 JUST IN: A whopping 1.5 million $ worth
of #XRP was scooped up in an instant 10 minutes ago! Those twin
green candles with massive wicks are signaling something BIG. 📈
Brace yourselves, XRP fam – looks like a major pump is on the
horizon! 🌊 Who else is seeing this? Drop…
pic.twitter.com/o2gy965qqF — WallStreetBulls (@w_thejazz) August
25, 2023 Related Reading: Which Top Meme Coins Have Held Their
Value Best Amid The Crypto Market Crash? The large buys led to two
quick spikes in the XRP price, reaching $0.5311 briefly before
going back downward. This signifies that there is a good amount of
buy pressure on the digital asset that could help offset the whale
selling. Interestingly, the token is still holding above the
200-day moving average which suggests bullish sentiment, at least
in the mid-term. So while a 20% can be expected due to the selling,
the decline will likely not last before the digital asset picks
back up. Follow Best Owie on Twitter for market insights, updates,
and the occasional funny tweet… Featured image from iStock, chart
from TradingView.com
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