The broader cryptocurrency market is currently fueled by strong bullish momentum, yet XRP has failed to participate in the rally. This underperformance may be linked to negative sentiment among XRP investors, particularly in light of recent sell-offs by large holders, known as whales. Such selling activity appears to be putting significant downward pressure on XRP’s price, preventing it from gaining momentum like other major cryptocurrencies.
A couple of weeks ago, Whale Alert identified that an XRP whale moved about 28 million XRP tokens to the Mexican-based exchange platform Bitso. The estimated value of this transfer is approximately $15 million based on the price of XRP at the time of transfer. Such huge moves usually hint at a sell-off, which can add to a bearish tone in the market. This type of activity generally creates bearish pressure on the price of a token, and it appears that Ripple is not immune to such pressure.
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XRP Struggles as Price Drops
At the time of writing, XRP is changing hands at $0.5482, which is 0.82% lower than the price recorded in the past 24 hours. Even though many other digital assets have hopped on the ongoing wave of bullish trends, XRP is lagging. The constant occurrence of the whale transactions and the corresponding market reactions may have led to such a drop in the price.
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When whales make large transfers, it often triggers a broader trend of selling as other investors follow suit. This can drag the market even lower because people will start selling to avoid the continued decline. Regarding fundamentals, this case shows that the increased activity by whales is not helping matters as it contributes to the overall bearish sentiment weighing the price down.
Outlook for XRP
The broader crypto market’s bullish momentum has yet to benefit XRP, largely due to the ongoing whale activity. If more whales continue to offload their holdings, XRP may face further downward pressure. Investors are watching closely as the token’s price remains vulnerable in the current market.
XRP is underperforming the broader market, with whale activity and selling pressure contributing to its struggles. As sell-offs continue, the token’s near-term outlook remains uncertain.
Also Read: SEC Misses Deadline but Files Appeal Against Ripple
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.