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XRP price, which had already been showing signs of a pullback in the last seven days, experienced a further decline to dip below the $0.5 threshold.
Today, the XRP market is experiencing a major downturn as the Ripple Labs-backed cryptocurrency slipped below its crucial $0.5 mark. This decline has brought bearish sentiments to XRP, even as investors begin to raise eyebrows about the token’s future trajectory.
Meanwhile, it might be worth noting that the sudden slip was largely due to whale activity. According to data from Whale Alert, a notable XRP whale investor may have just carried out a massive dump of 30 million tokens. The whale, identified as ..Hh4Rzn, transferred 30.23 million XRP to the Bitstamp exchange. Although the exact identity of this whale is not known, there might be reasons to believe that it is linked to Ripple Labs, the company behind XRP. That is because similar dumps have been recurring ever since Ripple strategically acquired some stake in the centralized exchange (CEX), drawing attention from keen observers in the industry.
Concerns in XRP Market as Token Price Slips below $0.5
As a direct consequence of the whale’s sell-off, XRP prices, which had already been showing signs of a pullback in the last seven days, experienced a further decline to dip below the $0.5 threshold. By press time, the token was seen trading at $0.4941, down 2.43% in the past 24 hours. Its market capitalization also took a hit, slipping by 2.43% to $27.35 billion, while trading volume surged by 62.69% to $641.66 million. That is according to data from CoinMarketCap.
Notably, it is not only XRP prices that have been affected by the recent whale activity. Coinglass data also suggests a growing uncertainty in the XRP market, with open interest dropping by 0.47% to $553.19 million and derivatives volume spiking by 88.82% to $553.19 million. Moreover, technical indicators such as the Relative Strength Index (RSI), which stands at 37, signal strong selling pressure and dampen any hopes of XRP recovering to the coveted $1 mark anytime soon.
For what it’s worth, the struggles of XRP have long been coming. Even before the recent whale dump, the ongoing legal tussle between Ripple and the US SEC has contributed greatly to its below-par performance.
Way Forward
Pro-XRP figures like lawyer Bill Morgan have aired their opinions of the token’s dip. In a recent X post, Morgan made light of XRP’s current situation, saying the past 7 days was “one week to forget”. However, a section of his followers quickly reminded him that such a downturn is now literally synonymous to XRP, which has been on a downward spiral for the past six years.
As market participants attempt to live with the aftermath of the recent whale dump, the future trajectory of XRP remains widely uncertain at this point.
