Despite recent positive developments for Ripple, a significant sale of 52 million XRP tokens in large transactions has attracted attention. XRP price experienced a 5.11% decrease. This unexpected activity was highlighted by Whale Alert, which tracks whale transactions, and indicated a significant movement in the digital asset. However, one analyst interpreted this move differently.
An Unexpected Ripple (XRP) Price Drop Amid Whale Activity
Following its legal victory against the U.S. Securities and Exchange Commission (SEC), Ripple’s XRP experienced a surprising correction in its price. The drop coincided with two significant transactions involving 52 million XRP tokens.
The transactions were initiated from an anonymous wallet and resulted in the transfer of XRP to two major cryptocurrency exchanges, Bitstamp and Bitso. While such transfers typically indicate a intent to sell, the decline in XRP’s value suggested that the assets were sold at a loss.
Reason for the Drop
The massive XRP transfer, initially estimated to be worth $31.7 million, occurred alongside a significant drop in the asset’s price. The price fell from $0.0651 to $0.616, marking a notable decrease of over 5%. This drop followed a similar incident where false news about BlackRock XRP ETF contributed to a 12% drop earlier in the week.
However, an alternative analysis by Bithomp proposed a different narrative. According to their research, the transaction may not have originated from an intent to sell. Instead, they suggested that the wallet in question was associated with Ripple and the transfer was carried out to support the company’s balance sheet with fiat. This strategic move could be in line with supporting the liquidity of Ripple Payments, previously known as on-demand liquidity, and emphasize a more nuanced perspective on the purpose of the transaction.
Analyst Ali Martinez Offers a Different Interpretation of Whale Transactions
Ali Martinez, a renowned analyst in the cryptocurrency world, interpreted this development differently. Highlighting the 18% drop in XRP over the past 10 days, the analyst pointed out the notable increase in whale transactions and assets, contrary to this situation. According to the analyst, the growing interest from major players could indicate a potential recovery in XRP price.
