- A mysterious XRP whale has offloaded a staggering 29.5 million tokens.
- Data has suggested an intriguing paradox: despite a seemingly bearish outlook, XRP may be undervalued.
- Network-wide accumulation has hinted at a positive undercurrent, illustrated by a steady rise in mean coin age.
Ripples of uncertainty spread through the crypto market Wednesday after a major XRP whale offloaded a hefty chunk of tokens, fueling speculation about the fate of the embattled Ripple-backed coin.
XRP Whale Dumps 29.5M Tokens
On-chain data revealed by Whale Alert, a blockchain tracking platform, showed an unknown entity offloading a staggering 29.5 million XRP tokens to Bitstamp, a Luxembourg-based cryptocurrency exchange. The transaction, valued at roughly $14.95 million, coincided with XRP’s recent price dip, raising concerns about further downward pressure.
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This significant whale movement adds to the token’s existing bearish trend. Since January 19th, the market structure for XRP has been characterized by bearishness, with a short-lived rally to $0.62, ultimately reversing course. Key technical indicators like the relative strength index and on-balance volume have also reflected downward momentum throughout the month.
A potential bounce to $0.53-$0.55, which could retest previous support levels as resistance, would offer a potential shorting opportunity for traders as the next major bearish target remains the October low of $0.473.
XRP Undervalued Despite Bearish Outlook?
Despite the bearish outlook, Santiment’s data suggests XRP might be undervalued. The ratio of XRP’s Market Cap to its Realized Cap ratio currently sits at -16.25%, its lowest level since October 18th, indicating that holders are experiencing losses and investor confidence is low. However, a recent uptick in weighted sentiment despite the price dip suggests a glimmer of hope.
On a more positive note, the mean coin age has steadily risen since early January, suggesting network-wide accumulation. However, a large selling wave was observed on January 17th through the dormant circulation metric, which coincided with an over 11% drop in XRP’s price.
On the Flipside
- While the prevailing sentiment is bearish, there’s an alternative view that sees the recent market correction as a healthy adjustment.
- Santiment’s data might not capture the full picture, emphasizing the need for a more comprehensive assessment of market factors.
Why This Matters
As the market awaits further developments, the recent whale transaction and prevailing bearish sentiment overshadow XRP’s near-term prospects. However, the underlying fundamentals and signs of accumulation offer a sliver of hope for the token’s long-term potential.
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To delve deeper into the impact of whales pouring XRP and ETH into centralized exchanges, triggering an altcoin sell-off, explore the insights here:
Whales Pour XRP & ETH into CEXs, Triggering Altcoin Sell-off
For a closer look at the on-chain warning signs emanating from Bitcoin, Ethereum, and XRP, navigate through the details here:
Bitcoin, Ethereum, and XRP Flash On-Chain Warning Signs
