The recent downturn in the XRP market has not deterred large-scale investors, often referred to as “whales.” Amid a 12% drop in the price of XRP between June 22 and June 28, they instead saw an opportunity rather than a setback, amassing 360 million XRP worth about $170 million. This significant investment demonstrates the high-stakes moves that define the crypto markets.
While such large-scale purchases are not uncommon in the volatile world of cryptocurrencies, this particular accumulation of XRP seems to suggest a confident long-term view of these whales’ net worth, despite the current bearish trend.
#Ripple whales bought the dip!
While the price of #XRP fell 12% from June 22 to June 28, whales bought 360 million $XRP worth nearly $170 million. pic.twitter.com/QI0m45cIio
— Ali (@ali_charts) June 29, 2023
XRP Whale Movements Amid Market Swings
On June 22, the price of XRP hit a weekly high of $0.52. But this peak did not last long. The subsequent reversal led to a decline, leading to more profit taking as many felt the asset was overvalued.
Related reading: “Ripple (XRP) is a must-hold for the next bull run,” says Bitcoin Maxi
Consequently, XRP is on a downward slope, breaking through key support levels and currently trading below the previous $0.5. This brings the asset’s decline to about 4.3% for the past week.
The picture isn’t all doom and gloom, however. XRP’s market capitalization is $24.8 billion, making it the fourth largest cryptocurrency by market capitalization. This ranking comes even amid the notable downward pressure.
Despite last week’s bearish trend, the past 24 hours have shown signs of a recovery for XRP. The token has experienced a slight rebound, rising 2.1% in price. This positive move has bolstered the asset’s market cap by more than $500 million, from just under $24 billion earlier this month to the current $24.8 billion.
Still, XRP’s daily trading volume has experienced a significant drop, from the $1 billion mark earlier this month to less than $600 million in the past 24 hours. The price of the token has remained somewhat stable, with a 24-hour low of $0.46 and a high of $0.47.
Effect on the market
While the whales’ massive XRP purchase is newsworthy, it’s not the only factor at play. The modest price increase trend can be attributed to an overall slight bullish sentiment echoing in the broader cryptocurrency market.
Bitcoin, the frontrunner in the crypto space, has also shown a small upward trend, typically impacting the performance of other digital assets, including XRP.
In this volatile world of cryptocurrencies, it is critical to keep an eye on such important movements as that of the whales. Their actions could pave the way for what’s next for XRP and other cryptocurrencies in the coming weeks and months.
Ripple Labs has been actively trying to get the Security and Executive Commission (SEC) lawsuit against it dismissed, alleging that unlike conventional securities, XRP works like a digital currency due to its practical use and decentralized features. The company challenges the authority of the SEC in this regard and condemns the regulatory body for not providing clear guidance on XRP’s status as a security.
Ripple alleges that the ongoing legal dispute has adversely affected XRP holders and hindered progress in the cryptocurrency sector. The court’s ruling on Ripple’s dismissal request is eagerly awaited, and could have a significant impact on the course of the lawsuit.
If granted, the request could significantly undermine the SEC’s case, but if denied, the legal battle will continue and the SEC’s allegations against Ripple will remain active.
Featured image from Shutterstock, chart from TradingView