- The price of XRP plummeted and the sale of whales as a major decision in the SEC lawsuit came closer.
- Most holders decided not to let it go, but XRP could fall below $0.59.
The actions of some Ripple [XRP] whales in the last 24 hours indicated a lack of confidence in the token. According to Whale Alert, one whale transferred 27.6 million XRP to the digital exchange platform Bitso.
Another whale around the same period sent 22.8 million tokens for the Bitstamp exchange.
Source:
The next verdict could determine what the next step is
Wallet-to-exchange transactions are not uncommon in the crypto market. But usually the intention is not to hold the tokens. Instead, the affected participants sell, causing the price of the asset to fall.
For these whales, the decision to sell now could be related to the lawsuit between the US SEC and Ripple. While there have been no major updates on the case, March 22 comes to mind.
By then, the SEC is expected to submit remedies-related briefs to Judge Analisa Torres. For the unfamiliar, a remedy-related order is a file seeking compensation for causing damage or losses.
On the said date, the SEC could issue sanctions for Judge Torres to hammer Ripple. AMBCrypto’s research shows that it remains uncertain whether the judge would comply with the demand.
However, it is likely that the embattled blockchain payments company will argue against this.
As the outcome of the issue remains speculative, the recent sell-off indicated that whales do not want to be on the receiving end of a potential XRP decline.
At the time of writing, the price of XRP was $0.61, a rate of 9.13%. correction in the last 24 hours. Despite the withdrawal, the total number of XRP holders remained above 5 million.
Source: Santiment
XRP can continue to dig deep
This data implied that many holders of the token are confident that XRP would perform well in the long term. If the number of holders increases, the price of XRP may recover.
Should this be the case, the bullish price predictions that AMBCrypto reported could come true at some point. However, the technical outlook on the XRP/USD daily chart suggested that the price could continue to decline.
One reason for this prediction was the Exponential Moving Average (EMA). At the time of writing, the 20 EMA (blue) crossed the 50 EMA (yellow), which would indicate a bullish trend.
But XRP had fallen below the 20 EMA, indicating that the bullish thesis was invalid. The chart below also showed how it was about to drop below the 50 EMA. If the price falls below the 50 EMA ($0.59), it could drop to $0.55.
Source: Coinalyse
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Additionally, the Cumulative Volume Delta (CVD) plummeted, indicating that sellers are eager to meet the offer, while buyers may be willing to accept the offer.
If this continues, the price of XRP could fall further. In a very bearish scenario, a drop to $0.53 could be an option unless buyers trade in their offers.