In the past few days, whales have been dumping large amounts of XRP to exchanges. At the same time, Ripple rejected the revised offer from the U.S. Securities and Exchange Commission, which has raised more concerns about its future.
Whales have been transferring large amounts of Ripple (XRP) to exchanges in the past few days. According to commentator MartyParty’s tweet, as many as 63,570,000 XRP have been transferred to exchanges since July 1.
This significant fluctuation indicates potential volatility in the market, as whales may be preparing for price fluctuations. The sudden influx of such a large amount of XRP into exchanges could overwhelm existing buy orders and drive down prices. This is especially true if there are not enough buyers prepared to absorb all the tokens at the current price. With investors reacting to whale activity, the market may experience even greater volatility. Some may see this as a selling opportunity and follow suit, leading to a snowball effect.
At the time of writing, the trading price of XRP is $0.4789. After testing levels of $0.556 on May 6, the token’s price has dropped significantly. During this time, there have been multiple lower lows and lower highs, indicating a bearish trend. The recent increase in XRP price has not been enough to reverse or weaken this trend.
The RSI (Relative Strength Index) of XRP remains high, indicating a strong upward momentum for the token. However, the significant recent decrease in the CMF (Chaikin Money Flow) over the past few days suggests that funds flowing into XRP tokens have decreased.
Whale activity in XRP may be a result of declining investor confidence, which has been caused by Ripple’s handling of its case with the U.S. Securities and Exchange Commission. The SEC initially cracked down hard on Ripple, demanding a hefty $2 billion fine for its alleged violations of securities regulations. However, in a recent move, the regulatory agency softened its stance and proposed a significant reduction of the fine to $1.02 billion. However, Ripple rejected this offer, as the company seems to believe it will win rather than settle. However, the longer the case drags on, the more investors may lose confidence, which could naturally have a huge impact on the future prospects of XRP.
Are your investments in the green? Check out the XRP profit calculator. This move has also drawn criticism of the U.S. Securities and Exchange Commission, mainly because the regulatory agency is seen as stifling innovation in the cryptocurrency space. It has proven to be a costly legal dispute for Ripple, with the company having spent over $200 million so far.