The post Ripple News: XRP Price at Cross Roads as Whales Dump Ahead of SEC Settlement appeared first on Coinpedia Fintech News
The cryptocurrency market has been trending downward for nearly a month, and the bearish sentiment shows no signs of letting up. In the bear market, XRP whales have sparked significant concern within the crypto community as they offload millions of XRP just days before Ripple is set to pay a $125 million settlement to the U.S. SEC.
Should we expect more trouble ahead?
Ripple Whales Turn Bearish?
On September 2, on-chain data from Whale Alert revealed that nearly 1 billion XRP was transferred to Ripple in a series of transactions. Among these, a notable dump of 20 million XRP was made by a well-known whale address, depositing the funds into the Bitstamp exchange. This massive movement has intensified bearish sentiment in the market, with concerns mounting over the asset’s stability as the $125 million settlement payment looms.
Uptrend or Sell-Off? Key Indicators to Watch
Adding to the woes, Ripple’s recent escrow activity has also fueled doubts about XRP’s future price movements. The blockchain payments firm unlocked 1 billion XRP from escrow, only to lock 800 million XRP back shortly thereafter. These massive movements have left the market speculating on Ripple’s strategy and the potential impact on XRP’s value as the settlement with the SEC approaches.
Technically, XRP’s current price is slightly below the 50-day simple moving average (SMA) of $0.577, signaling a bearish trend with potential resistance at this level. Conversely, the 200-day SMA stands at $0.547, indicating a bullish long-term trend and suggesting that XRP is near a crucial support level. Hence staying above this SMA could be vital for future price gains.
XRP Price Dips Amid Sell-off
The heavy selling by whales has already impacted XRP’s price, which dipped 1.5%, currently sitting at $0.5503. The coin’s 24-hour price range fluctuated between $0.5448 and $0.5618, with today’s downward movement primarily attributed to the intensified selling pressure. Despite this, some analysts remain bullish on XRP’s long-term prospects, with some predictions suggesting that the token could rise as high as $4, spurred by Ripple’s new banking initiatives.
Mixed Sentiments Within Community
Market data presents a mixed picture for XRP. Coinglass reports a 1.15% dip in open interest (OI) for XRP, now standing at $608.68 million. At the same time, derivatives volume surged by 65% to $823.89 million, reflecting heightened trading activity.
The Relative Strength Index (RSI) for XRP rests at 42, indicating that the asset is currently neither overbought nor oversold. As the community watches closely, the impact of these whale movements and Ripple’s impending settlement could shape XRP’s trajectory in the days to come.
It’s been rough for XRP. Can it emerge stronger? We’ll have to wait to find out.
