Since the beginning of October, XRP has been extremely volatile, which can be attributed to the growing concern regarding the cryptocurrency’s future prospects.
This is further accelerated by a recent report by Whale Alerts which shows two whale-sized transactions involving XRP have recently made their way onto cryptocurrency exchanges, prompting investors to ponder the reasons behind the transactions and speculate on possible outcomes.
54.9 Million XRP Tokens Moved To Crypto Exchanges
Two whale-sized XRP transactions recently sent the community into speculation. On October 11, crypto whale transfer tracker Whale Alerts posted on social media platform X two whale transfers.
The transfers, worth over $26.5 million combined, were sent from a single wallet address “r3zUh” to crypto exchanges Bitso and Bitstamp. The first transaction of 31,200,000 XRP worth $15,149,324 was sent to Bitstamp.
🚨 31,200,000 #XRP (15,149,324 USD) transferred from unknown wallet to #Bitstamphttps://t.co/Xzi6xUN2Nt
— Whale Alert (@whale_alert) October 11, 2023
The second transaction of 23,700,000 XRP worth $11,502,941 was sent to Bitso shortly after.
🚨 23,700,000 #XRP (11,502,941 USD) transferred from unknown wallet to #Bitsohttps://t.co/CuumLCSnko
— Whale Alert (@whale_alert) October 11, 2023
A further examination of the address shows other transfers of 2.1 million, 300,000, and 7.1 million XRP tokens to crypto exchanges between these transfers. The wallet now holds a bare 4,660.55 tokens worth $2,231.
Although the token currently has a market cap of $25.5 billion, the timing of these mega-moves of the token also coincided with a drop in its price. The token is down by 1.79% in the past 24 hours, fueling further rumors of the whale offloading its bags.
Will Bulls Or Bears Prevail?
XRP has been particularly volatile with increased selling pressure, falling more than 8.45% in a 7-day timeframe. On-chain data has revealed multiple whale transactions to exchanges, showing some whales might be selling off to avoid further price decline.
At the same time, on-chain data has shown some whales taking advantage of the price fall to increase their holdings. According to Whale Alerts, 50 million tokens worth $24.8 million were transferred from Crypto.com to a private wallet earlier in the week.
🚨 50,000,000 #XRP (24,894,598 USD) transferred from #CryptoCom to unknown wallethttps://t.co/f2Zrx9pLf3
— Whale Alert (@whale_alert) October 9, 2023
Historical data suggests a move into a bullish pattern is possible this quarter. As earlier reported, Q4, on average, has produced a 30% ROI for investors in recent years. Only time will tell whether bulls or bears prevail in this situation.
The token is currently approaching major support at $0.46, and a substantial rebound will show the prevalence of the accumulation by bullish whales.
Crypto analyst Matthew Dixon has projected a further decline for the token and its ecosystem. Dixon’s analysis uses the Elliot Wave Theory to suggest a bearish outlook. On the other hand, crypto analyst Dark Defender uses the same Elliot Wave Theory to predict an XRP price rise to $5.85.
Token price shows weakness | Source: XRPUSD on Tradingview.com
Featured image from YouTube, chart from Tradingview.com