In July, Judge Analisa Torres announced for the first time that programmatic sales of XRP were not classified as securities, causing the token price to rise. However, now that the excitement from the decision has faded and the United States Securities and Exchange Commission (SEC) has begun to resist, the price of the cryptocurrency is once again declining, leading to significant sell-offs of the token.
A whale tracker on the blockchain has identified an XRP transaction that could exert downward pressure on the price of the cryptocurrency. According to the post shared on X, a single whale transferred a total of 29.3 million tokens to a centralized exchange. The tokens, which were valued at just over $15.13 million at the time, were deposited into the Bitstamp exchange.
Although large transactions like this are not new on the network, they raise concerns among investors. When investors transfer tokens to centralized exchanges like Bitstamp, it is often interpreted as a move to sell the tokens. This is because centralized exchanges offer lower fees and deeper liquidity, which helps mitigate the impact of the sale.
Given the rapid decline in the XRP price during the transaction, it is possible that the whale had already started selling the cryptocurrencies. However, further selling with such a large supply could cause the price to drop even further, potentially leading to a 20% decrease in price pressure. Since the XRP price is already in a precarious position, this scenario of decline becomes more likely, especially as the wider cryptocurrency market experiences widespread negative momentum and Bitcoin struggles to recover.
According to analysts, another drop from here could easily push the XRP price down to the $0.48 region. Although the whale’s $15 million move to Bitstamp raised concerns, bulls did not accept it. A few hours after the transaction was first seen on the blockchain, a significant XRP purchase worth $1.5 million was reported on the Bybit exchange.
These large purchases caused two rapid increases in the XRP price, briefly reaching $0.5311 and then declining again. This suggests that there is significant buying pressure that could help balance out whale selling in the cryptocurrency. Additionally, the token is still above the 200-day moving average, indicating a bullish trend at least in the medium term. Therefore, while a 20% increase due to selling is expected, the price drop may not last long before the cryptocurrency rebounds.