Massive XRP whale wallets are at it again as recently some of the biggest holders of XRP dumped over 100 million tokens, which has put major selling pressure on the XRP price.
On the chain facts shows that since July 19, the total supply in addresses with between 100,000 and 1,000,000 coins has fallen from 6.85 billion to 6.75 billion.
Whales take profit after pump
The actions of whales or major holders of cryptocurrencies always seem to tell the nature of general market sentiment. When whales sell parts of their holdings, it often causes a cascade of smaller keepers selling in response, driving the price down.
While retail investors and smaller holders often get caught up in the excitement of price increases and buy-in at the top, whales are more likely to sell off after huge price jumps and buy back after the pullback.
Right now, XRP whales may be taking some profit from the recent price surge following news of a partial SEC win. The price of XRP rose more than 70% in less than 24 hours to $0.85 based on the news, but has since fallen about 15% from its yearly high. Facts shows that the price drop started two weeks ago, around the same time XRP whales started selling their holdings.
Token price falls to $0.62 following whale dumps | Source: XRPUSD on Tradingview.com
What’s next for XRP?
The XRP ecosystem experienced a similar sell-off in June, when whales dumped about 120 million XRP after Ripple unlocked its escrow to release another 1 billion tokens. Sales will likely lead to more sales. So in the near term, we are likely to see some price volatility and swings as the market absorbs the impact of such a large amount of tokens coming into circulation.
The price of XRP, on the other hand, is doing well compared to the overall market. It was last reported earlier month that whales have accumulated more than $500 million in XRP since February in anticipation of positive developments within the ecosystem.
Ripple, the company behind the altcoin, say it now looks to the tokenized asset market as it hopes to unlock trillions of dollars worth of value in the global financial system.
However, Ripple’s partial court victory appears to be on one leg as analysts expect an appeal from the SEC. If this happens, it could negatively affect the price of XRP, which could lead to a downtrend. In such a case, last month’s altcoin gains can be quickly wiped out.
XRP is currently trading at $0.6253 and is up 31.52% in the last 30 days.
Featured image from iStock, chart from Tradingview.com