The recent downturn in the XRP market has not deterred large-scale investors, often referred to as ‘whales’. Amid a 12% drop in XRP’s price between June 22 and June 28, they instead saw an opportunity rather than a setback, amassing 360 million XRP worth approximately $170 million. This significant investment demonstrates the high-stake moves that define the crypto markets.
While such large-scale purchases are not unusual in the volatile world of cryptocurrencies, this particular accumulation of XRP seems to suggest a confident long-term outlook on the asset by these whales, despite the current bearish trend.
#Ripple whales bought the dip!
— Ali (@ali_charts) June 29, 2023
XRP Whale Movements Amid Market Fluctuations
On June 22, XRP’s price hit a weekly high of $0.52. But this peak didn’t last long. The subsequent reversal led to a drop, triggering increased profit-taking as many felt the asset was overvalued.
Consequently, XRP has been on a downward slope, breaking key support levels, and presently trades below the earlier $0.5 mark. This puts the asset’s decline at around 4.3% for the past week.
However, the picture is not all gloom and doom. The market capitalization of XRP sits at $24.8 billion, making it the fourth-largest cryptocurrency by market cap. This ranking comes even amid the notable downward pressure.
Despite the past week’s bearish trend, the last 24 hours have shown some signs of recovery for XRP. The token has experienced a slight uptick, gaining 2.1% in price. This positive movement has bolstered the asset’s market cap by over $500 million, pushing it up from just below $24 billion earlier this month to the current $24.8 billion.
Even so, XRP’s daily trading volume has experienced a significant fall, dropping from the $1 billion mark seen earlier this month to below $600 million in the last 24 hours. The token’s price has remained somewhat stable, with a 24-hour low of $0.46 and a high of $0.47.
Effect On The Market
While the whales’ massive XRP purchase is newsworthy, it’s not the only factor at play. The modest price uptrend could be attributed to an overall slight bullish sentiment reverberating throughout the broader cryptocurrency market.
Bitcoin, the front-runner in the crypto space, has also displayed a minor upward trend, which typically influences the performance of other digital assets, including XRP.
In this volatile world of cryptocurrencies, it’s crucial to keep an eye on such significant moves as the ones made by the whales. Their actions could set the stage for what’s next for XRP and other cryptocurrencies in the weeks and months to come.
Ripple Labs has actively sought to have the Security and Executive Commission (SEC) lawsuit against it dismissed, asserting that XRP, unlike conventional securities, operates as a digital currency due to its practical use and decentralized features. The company is challenging the SEC’s authority in this regard and condemns the regulatory body for not offering clear guidance on the status of XRP as a security.
Ripple claims that the ongoing legal dispute has adversely affected XRP holders and stifled progress in the cryptocurrency sector. The court’s ruling on Ripple’s request for dismissal is eagerly awaited, and it could substantially impact the trajectory of the lawsuit.
Should the request be granted, it could significantly undermine the SEC’s case, but if denied, the legal battle will continue with the SEC’s charges against Ripple remaining active.
Featured image from Shutterstock, Chart from TradingView