Recently, reports have suggested that major investors are shifting investments away from Ripple (XRP). Major Ripple investors suffered significant losses due to ongoing challenges such as legal issues and declining market confidence, which did push the XRP price down to a 3-month low of $0.50 after reaching all-time highs.
Whale Dumping XRP
Amid the ongoing cryptocurrency downturn, whales have chosen to dump Ripple (XRP), which was previously a significant holding in their portfolios, as a result of a combination of several variables. Investors are exercising caution and raising concerns due to regulatory issues and ongoing market corrections.
Recently, XRP fell sharply to $0.50, plummeting more than 5% in 24 hours, hitting its lowest point in three months. The decline has raised concerns that it threatens to wipe out all the gains made since the mid-October rally.
Meanwhile, XRP sales increased by 80%, indicating that many traders are deciding to sell.
Tweets’ impact on XRP downturn
Many believe the recession happened shortly after famous chartist Ari Martinez tweeted. He noted that the TD Sequential indicator has proven its accuracy in predicting XRP trends.
Notably, the indicator showed a buy signal on the 3rd, indicating that XRP may be preparing for a rebound. However, further analysis of XRP technical indicators reveals a more complicated picture.
When examining the daily chart, the Relative Strength Index (RSI) shows oversold conditions, which usually signals a bearish trend; such levels can trigger a buy signal. Additionally, the Moving Average Convergence Divergence (MACD) moved below the signal line, reflecting a negative trend dominated by bearish forces.
Traders suffered huge losses
The decline in XRP prices not only affects short-term traders, but also the overall profitability of asset holders. According to Santiment, most traders would suffer a loss of 5.61% at current prices if they decided to sell their tokens.
These market conditions may deter traders who prefer short-term exposure to 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, XRP holders (whales) have seen a noticeable increase in trading volume. However, there has not been a significant increase in the number of new large XRP holders, and whales have not been accumulating more XRP during this price drop.
Finally, what Lao Lin wants to say is that there are still many things that have not been expressed, and it is not possible to understand everything through just one article. You can continue to pay attention to Lao Lin, and let us create glory together in the new round of bull market!
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