It is now doubtful whether Ripple Labs’ cryptocurrency,
The general unease in the market about the upcoming Bitcoin halving and a significant transfer of Bitcoin XRP tokens by a whale also correspond to this fall.
Whale offloads millions of tokens
Data from blockchain tracker Whale Alert shows that an unknown wallet transferred nearly 25 million XRP tokens worth $14.75 million to cryptocurrency exchange Bitstamp. This transaction sparked speculation within the crypto community, with many attributing the subsequent price drop to the whale sell-off.
The timing of this transfer is particularly notable because it follows a pattern observed in the past. When Ripple Labs strategically acquired stakes in cryptocurrency exchanges, similar whale movements to these exchanges were observed.
This led some to believe that Ripple could attempt to manage the altcoin’s market supply, potentially causing price fluctuations through controlled currency inflows.
🚨 24,880,000 #XRP (14,752,878 USD) transferred from unknown wallet to #Bitsstamphttps://t.co/wdX27lI223
— Whale Alert (@whale_alert) April 7, 2024
Bearish sentiment is gripping the XRP market
Further contributing to the price decline were signs of waning investor interest in XRP. On-chain data showed a decline in derivatives activity, indicating a possible decline in investor confidence.
XRP market cap now at $32 billion. Chart: TradingView.
Additionally, data from Coinglass showed a decline in open interest for XRP futures contracts, in addition to liquidations of over $280,000 in one day. These indicators collectively paint a picture of bearish market sentiment around digital assets.
Source: Coinglass
Bitcoin halving throws uncertainty into the mix
The upcoming Bitcoin halving, an event that significantly reduces the number of new Bitcoins entering circulation, has injected uncertainty into the broader cryptocurrency market.
While such events have historically led to price increases for Bitcoin, the short-term impact on altcoins like XRP remains unclear. Some analysts believe the crypto could benefit from a Bitcoin spike after the halving, while others expect a more complex interplay between the two currencies.
Can XRP Still Reach $1 in April?
The recent price drop undoubtedly makes the $1 target for XRP in April seem less attainable. However, dismissing this possibility entirely might be premature. The cryptocurrency market is known for its volatility, and unforeseen events can cause a rapid price increase for the coin.
Furthermore, some analysts maintain their bullish outlook, believing that the bullish sentiment surrounding the token, combined with the potential tailwinds from Bitcoin’s halving, could still push XRP towards the coveted $1 mark.
Featured image from Pexels, chart from TradingView
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