Amid the ongoing challenges in the digital currency market, a significant XRP investor has been identified selling a large quantity of XRP tokens, drawing considerable attention from crypto fans.
Notable Sale of 30 Million XRP Tokens
As reported by blockchain tracking tool Whale Alert, a major XRP investor sold around 30.17 million XRP tokens, valued at close to $76.34 million, on January 12.
This substantial sell-off prompted a bearish trend and led to a surge in substantial short positions, causing a decline in the token’s value on the markets. Despite this, there is a prevailing pessimistic sentiment in the market, with leading assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) also witnessing price drops.
Rise in XRP Reserves on Binance
The current market conditions have not only impacted individual investors. Data from analytics company CryptoQuant shows that Binance’s reserves have surged significantly over the past two days.
It was revealed that Binance has added 34 million XRP to its reserves, indicating that major investors and long-term holders have transferred their assets to the exchange, either for sale or for other transactions.
Impact of Recent Activities on XRP Price Movement
The recent actions of these large investors and traders occurred following XRP’s breakout from a bullish flag-and-pole price pattern, as it approached a key resistance level at $2.56.
Subsequently, however, the cryptocurrency’s value has dropped partly due to these notable investor activities.
Currently, XRP is trading around $2.42, experiencing a decrease of more than 2.55% over 24 hours. During the same period, its trading volume has fallen by 30% due to the recent significant sell-off and the rise in reserves on exchanges, suggesting heightened anxiety among traders and investors compared to previous days.
XRP Price Forecast
Based on the recent price movements of the altcoin, it appears that XRP is bearish in the short term, with a high likelihood of a 20% decline to reach the support level of $1.92 in the near future. However, this bearish trend will only materialize if XRP closes its daily candle below $2.30. Otherwise, it might not transpire.
It is important to note that this anticipated price drop is expected to be temporary, and market sentiment could shift following the inauguration of President-elect Donald Trump on January 20.