The price of Ripple (XRP) dropped by over 11% over the weekend, signaling the entrance to the correction phase and erasing the gains of the month-long XRP rally.
The 7th largest crypto with more than a $16.5 billion market cap, started the new week with a 4.2% fall to $0.3334 on Monday, August 22nd. It is the third time that XRP has tested the same price levels since it went into a sharp nosedive last Friday, August 19th.
The price of Ripple (XRP) went into a freefall on Friday, losing nearly 10% of its value in a few hours following the broader crypto market sell-off, triggered by the Bitcoin (BTC) price breaking the $22K support level.
The current price drop brought XRP back to the correction zone to similar levels it was a month ago. XRP has been rallying since July 27th, reaching its price peak of $0.4056 on July 30th and lingering between the $0.37 and $0.38 price range since then.
Whale Transactions Spiked
Prior to the XRP price drop, crypto market analysis firm Santiment reported the “notable whale activity” on the XRP network. According to its metrics, the number of XRP transactions above $100K has spiked and the optimistic sentiment reached its highest levels since April.
🐳 #XRP is seeing notable whale activity, as well as high optimism, in Friday's closing trading hours. We've picked up a spike of $100k+ $XRP transactions that hasn't been equaled since May 13th. Additionally, sentiment is at its highest since April. https://t.co/lXz1LfyrCR pic.twitter.com/DuEhLrtWfs
— Santiment (@santimentfeed) August 19, 2022
Ripple itself was one of the catalysts behind several major transactions. The company was spotted transferring 50 Million XRP (worth $18,8 million) to its wallet, used for converting XRPs into fiat last week.
The move might be associated with the company’s Latin American and Asia-Pacific expansion plans. Last week Ripple announced the launch of its XRP-based On-Demand Liquidity (ODL) service in partnership with Brazil’s Travelex bank. The move is expected to enable XRP transfers in the world’s seventh most populous country, where the legislative framework for crypto regulation is on the go.
Sponsored
Accordingly, the company unveiled its plans for Japan-Thailand remittance services with SBI Remit. Following the partnership, Japan’s largest money transfer provider SBI Remit is set to allow instant money transfers between both countries by using the XRP network.
Japan is one of the biggest Asian markets for XRP users. Its regulatory body, the Financial Services Agency (FSA), declared last year that Ripple (XRP) does not fall under the definition of a security under Japanese law.
The company is also exploring the possibility to acquire bankrupt crypto lending firm Celsius Network LLC. If Ripple Labs succeeds in purchasing Celsius, this could mark the first significant deal for the company in years.
On the Flipside
- The future price of Ripple (XRP) still heavily depends on the outcomes of its legal battle with the United States Securities and Exchange Commission (SEC). The lawsuit of whether the XRP should be treated as a security is one of the key factors that is keeping XRP’s price down.
Why You Should Care
The growing number of financial institutions and liquidity providers worldwide tend to settle their finances on XRP. The price of the seventh biggest crypto by market cap is currently 90% down from its all-time high of $3.40.
Check out more about Ripple’s interest in Celsius:
Ripple Eyes Celsius: Preparing for Its First Major Deal?
Read about XRP holders’ class action lawsuit against SEC:
SEC vs Ripple: Hundreds of XRP Holders Join Class Action Lawsuit
