Over 70 Million XRP Moved to Exchanges: Is a Market Crash Imminent?
Highlights:
- Two unidentified wallets have moved over 70 million XRP to two different exchanges.
- XRP’s massive exchange inflows could negatively impact the token’s price.
- Technical analysis spotlights a potent XRP price resistance level at $0.44.
XRP, Ripple’s payment protocol token, could be in for a market crash, evidenced by massive exchange inflows. Notably, the XRP exchange inflows, totaling about 70.3 million coins, occurred within 24 hours in two distinct transactions.
Whenever scenarios like the one described above happen, it implies a lack of faith in an asset expansion potential. Hence, it could result in spontaneous price declines, as more traders might consider selling off their XRP holdings.
XRP Inflows Details
Whale Alert, a crypto transactions tracker on X, tracked the XRP exchange inflows, reporting them via its verified handle. According to the reports making rounds, particularly among XRP community members, two exchanges received the XRP tokens.
Notedly, the first transaction occurred on July 9, 2024, at 19:35:01 UTC. It involved an unknown wallet sending about 33.78 million XRP to Bitstamp. As of the time of making the transfer, the XRP tokens were worth approximately $14.67 million.
🚨 33,780,000 #XRP (14,671,124 USD) transferred from unknown wallet to #Bitstamphttps://t.co/4cOVhicLVe
— Whale Alert (@whale_alert) July 9, 2024
Barely two minutes after the first transfer, another anonymous wallet triggered a second XRP shift. The second transaction moved about $36.52 million XRP valued at around $15.84 million to Bitso. Evaluating the net valuation of the moved tokens, it becomes apparent that the two wallets amassed $30 million.
🚨 36,520,000 #XRP (15,842,234 USD) transferred from unknown wallet to #Bitsohttps://t.co/g7kWbWgB31
— Whale Alert (@whale_alert) July 9, 2024
Price Reactions After Over 70 Million Exchange Inflows
At the time of press, XRP is changing hands at about $0.43, reflecting a slight 0.6% price drop. The token boasts a market cap and a 24-hour trading volume of $24.1 billion and $1.03 billion, respectively.
In the past week, XRP recorded declines of about 8.1% despite touching a weekly high of approximately $0.47. In its 14-day-to-date and month-to-date variables, XRP recorded declines of roughly 8% and 14.2%, respectively. More worryingly, XRP has shed accumulated gains from the previous year, evidenced by its year-to-date data indicating an 8.4% loss.
While the above statistics might mirror the impacts of the broader market outlook, they do not eliminate the possibility of future declines. The exchange inflows could elicit fear among other investors, particularly retailers. If substantial exchange inflows become a trend among XRP holders, the impacts will be fatal in the long run.
Risk Assessment Data Reflects a Bearish Future
According to XRP’s statistics on Coincodex, the digital asset boasts a medium volatility at 4.63%. Going further, sentiment on the token remains bearish, while the “Fear & Greed Index” reflects fear.
Moving over to the risk assessment index proper, Coincodex revealed that XRP has only outperformed 19% of the top-performing cryptocurrencies. Considering it graced the crypto space ten years ago, the above statistics do not imply a good prognosis.
Meanwhile, other variables, representing a poor XRP outlook, disclosed that it is trading below its 200-day Simple Moving Average (SMA). In addition, XRP is 89% below its peak price, with a 6.08% yearly inflation rate.
$0.44 Posing Strong Resistance
On XRP’s technical analysis, the $0.44 mark has posed a potent resistance despite recent attempts to escape it on two occasions. Currently, XRP is on a downward trajectory. If the declines persist, the token could find support again at the $0.409 level. However, further price declines would culminate in revisiting another former support at $0.397.
Should the market swing in Altcoins’ favor, XRP will likely witness stops at several levels on its part to break above $0.5. Based on the chart, the coin will likely face hindrances at $0.44, $0.45, and significantly, at $0.48.
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Chinedu Agbakwusi
Chinedu Agbakwusi is a news writer and editor for Crypto2Community. He is a crypto enthusiast with vast experience across several crypto-related projects and platforms. Chinedu has been following the development of the crypto market for several years, and he is optimistic about its potential to democratise the global financial system. He hopes to be a reliable plug for reporting trends and breaking down complex concepts to his readers. Agbakwusi's previously written for several crypto news including Times Tabloid, UPay, while also contributing over the years to many others leading media publications.
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