Recently, large XRP holders have sold over 100 million tokens, causing significant selling pressure on the XRP price. On-chain data indicates that the overall supply in addresses holding between 100,000-1,000,000 coins has decreased from 6.85 billion to 6.75 billion since July 19.
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XRP whales sell, price drops. Whales Taking Profit After Pump
The behavior of whales and large holders in the cryptocurrency market can often indicate the overall market sentiment. When these big players sell off a significant amount of their holdings, it can trigger a chain reaction of smaller holders selling, leading to a drop in price. XRP whales sell, price drops.
While retail investors and smaller holders may get caught up in the hype of price surges and buy at the peak, whales tend to sell off after major price increases and buy back in during the pullback.
Currently, XRP whales may be taking profits following the recent price surge due to the partial victory in the SEC case. XRP's price increased over 70% in less than 24 hours to $0.85 on the news, but has since declined about 15% from its yearly high. Data indicates that the price decline started two weeks ago, around the same time that XRP whales began selling their holdings.
What’s Next For XRP?
In June, the XRP ecosystem experienced a significant selloff as whales dumped around 120 million XRP after Ripple unlocked its escrow to add another 1 billion tokens into circulation. This event is likely to trigger more selloffs, leading to short-term price volatility and fluctuations as the market absorbs the impact of such a large amount of tokens entering circulation.
Despite this, the price of XRP is performing well compared to the overall market. It was reported last month that whales have been accumulating more than $500 million in XRP since February in anticipation of positive developments within the ecosystem.
Ripple, the company behind the altcoin, is now looking to enter the tokenized assets market, hoping to unlock trillions of dollars of value in the global financial system.
However, Ripple's partial victory in court may be short-lived, as analysts expect an appeal from the SEC. If this happens, it could negatively impact the price of XRP, leading to a downtrend. In such a case, the altcoin's gains from last month could quickly be erased.
As of now, XRP is trading at $0.6253 and has risen by 31.52% in the last 30 days.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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