What to Know:
- Large XRP investors have sold off billions in tokens since mid-October.
- The increase of XRP on exchanges suggests a potential sell-off is coming.
- Despite bearish signals, some analysts remain optimistic about XRP’s price potential.
XRP has experienced a significant sell-off by large investors since mid-October, raising concerns among the broader crypto community. This exodus of tokens has put downward pressure on XRP’s price, despite recent attempts at recovery. The actions of these major holders are being closely watched for potential market-moving implications.
The selling began in mid-October with XRP addresses holding over one billion tokens each offloading nearly 1.10 billion coins in a single week, reducing their total holdings to approximately 25.1 billion tokens, or about 40% of the asset’s circulating supply. This substantial sell-off continued in the following weeks, with various whale cohorts disposing of significant amounts of XRP. In total, around 1.4 billion XRP tokens, worth approximately $3.38 billion, have been sold in the past month.
Just now, #Ripple/#XRP whales offloaded 90 million $XRP! pic.twitter.com/RvZcBwV9JU
The rise in XRP stored on exchanges like Binance is another signal traders are watching closely. This shift from self-custody methods to centralized platforms is often seen as a precursor to further sell-offs, potentially exacerbating the existing downward pressure on XRP’s price. This behavior suggests investors are preparing to liquidate their holdings, adding to the bearish sentiment surrounding the token.
Despite these bearish signals, some analysts remain optimistic about XRP’s potential. One analyst believes that if XRP’s price breaks $2.70 and retests it as support, it may surge to $3.20. These contrasting views highlight the uncertainty surrounding XRP’s future, as it navigates market dynamics and regulatory developments.
The recent actions of large XRP holders and the increasing exchange reserves paint a complex picture for XRP investors. While the immediate outlook appears bearish, potential catalysts such as regulatory clarity or developments in Ripple’s legal battles could shift market sentiment. Investors should closely monitor these factors and exercise caution in their trading strategies.
Source: Original article
