XRP Price Plunges to Lowest in 3 Months Amid Whale Sell-off Surge – What Lies Ahead for XRP Price?
Recent reports have indicated that major investors are diverting their investments away from Ripple (XRP). This shift in investment can be attributed to various factors such as legal issues and a decline in market confidence. As a result, Ripple has suffered a significant loss of its major investors, causing the price of XRP to plummet to a three-month low of $0.50, after reaching its all-time high.
In the midst of the ongoing cryptocurrency slump, whales, who previously held significant amounts of Ripple (XRP) in their portfolios, have chosen to dump the digital asset. This decision is a result of several variables aligning, including regulatory issues and the current market correction, which has made investors cautious and skeptical.
Recently, XRP experienced a substantial drop to $0.50, declining by over 5% in just 24 hours. This decline is concerning as it threatens to erase all the gains made since the mid-October rally. Furthermore, there has been an 80% increase in the amount of XRP being sold, indicating that many traders are opting to sell off their holdings.
Many attribute the downturn in XRP’s price to a tweet from prominent chart analyst Ali Martinez. Martinez highlighted the accuracy of the TD Sequential indicator in forecasting XRP’s trends. The indicator currently displays a buy signal on the 3-day chart, suggesting a potential rebound for XRP. However, a deeper analysis of XRP’s technical indicators reveals a more complex situation.
Upon examining the daily chart, it becomes apparent that the Relative Strength Index (RSI) indicates oversold conditions, typically signaling a bearish trend. However, such levels can also trigger buy signals. Additionally, the Moving Average Convergence Divergence (MACD) has moved below the signal line, indicating a negative trend dominated by bearish forces.
The decline in XRP’s price has not only affected short-term traders but has also impacted the overall profitability of asset holders. According to data from Santiment, most traders would incur losses of 5.61% if they decide to sell their XRP coins at the current price.
These market conditions may discourage traders who prefer short-term investments in XRP. However, experienced traders who believe in the future success of the coin may see this as an opportunity to buy XRP at a lower price and strengthen their positions.
Interestingly, despite the price drop, there has been a noticeable increase in transactions by big XRP holders (whales). However, there has not been a substantial rise in the number of new large XRP holders, and whales have not massively accumulated more XRP during this price decline.