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- Whales dump 200 million XRP tokens, sparking market volatility.
- XRP price struggles to maintain support as whales continue selling.
- Major sell-off raises concerns about XRP’s future price direction.
Ripple’s XRP market has been thrown into chaos after whales offloaded more than 200 million XRP tokens within a mere 48 hours. This enormous liquidation has resulted in extreme price volatility, and it has set off panic among the investors, with the risk of a market crash. According to @ali_charts, the sudden surge in XRP supply has added intense volatility, leaving the cryptocurrency’s price hanging between key support and resistance levels.y
The trading day ended with the XRP closing at $2.25728, which is only a slight gain of 0.98 percent compared to the previous day. This slight increase notwithstanding, the overall trend is concerning; the market still has a long way to go, confronted as it is by still high levels of whale activity.
The Relative Strength Index (RSI) of XRP is at the neutral point of 42.29, which implies that the asset is neither in the overbought nor oversold status. This means that the market is lying in an indecisive state, awaiting guidance. Moreover, the tightening Bollinger Bands are another indicator of the possible volatility, and the price is expected to either bust or break shortly.
Also Read: XRPC ETF Set to Launch on Nasdaq, Opening New Horizons for XRP Traders
Whale Activity and XRP’s Vulnerability to a Market Correction
This abrupt dumping of such a significant quantity of XRP has put the cryptocurrency in a bad situation. XRP currently has critical support at $2.13354, but upon failure, the price might plummet within the shortest possible time, and this may raise panic over a further adjustment in the market.
On the other hand, when XRP is capable of surpassing the resistance at $2.61908, that would result in a price boom that would rebuild trust in traders and avoid the possible crash.
The fear that the sell-offs are not to end is another factor that enhances the uncertainty within the market. History has revealed that whales tend to create huge dumps and have a sharp correction, and this might not be an exception. Shareholders sit back with fingers crossed in anticipation of a stabilization or a downward trend.
This is because the following days would be critical to the direction that XRP will be heading in the market. The whales will determine whether XRP will be able to stabilize or if it may experience more volatility.
Also Read: Coinbase Cancels $2 Billion Acquisition of BVNK, Ending Advanced Acquisition Talks
