• A XRP whale has moved 29 million tokens to Bitstamp amid a price slide.
• The SEC v. Ripple case led to a sharp decline in the price of XRP, breaching crucial support levels.
• Presently, XRP’s price is recovering from the support level at $0.5, but there is a substantial risk of a significant drop if traders and whales opt to liquidate their holdings.
XRP Whale Moves 29 Million Tokens Amid Price Slide
A large holder transferred 29.3 million XRP worth $15.13 million to Bitstamp exchange on Aug 24, amid a price decline approaching the support level for the cryptocurrency token XRP (XRP). This whale had previously moved 14 million XRP to Bitso just a few hours earlier, suggesting that they are selling off their assets.
SEC v Ripple Case Impacts Price
The decision by Judge Analisa Torres to permit the U.S. SEC to submit an interlocutory appeal regarding XRP token sales had a significant impact on the market, triggering a notable downturn which led to a sharp decline in XRP’s price, breaching crucial support levels of $0.6 and $0.5.
Price Recovery Limited
In response to court notifications from both the SEC and Ripple Labs citing their unavailability in the second quarter of 2024, XRP’s price experienced a rebound; however, this bullish momentum was not sustained leading up to today’s trading volume with values declining by over 3%.
Risk Of Further Drops
Presently, XRP’s price is recovering from the support level at $0.5, but there is still substantial risk of further drops if traders and whales opt to liquidate their holdings before the trial between Ripple and the SEC occurs around late April or mid-May .
Conclusion:
With investors appearing to be selling off their holdings as well as large holders transferring tokens away from exchanges amidst falling prices it appears that caution should be taken when investing in or holding onto cryptocurrency tokens such as XRP until more definitive news surfaces regarding future legal actions taken against Ripple Labs Incorporated by financial regulators worldwide..