Ripple slips under $0.60 whales dump 140 million XRP tokens in seven days
- Ripple whales holding 100 million XRP and higher shed 140 million tokens in seven days.
- XRP retail investors accumulated the coin in the same time frame.
- XRP slips under support at $0.60, trades at $0.5950 at the time of writing.
Ripple (XRP) posts a second consecutive session of losses on Monday, dipping under the key psychological support of $0.60, as large-wallet investors seem to have engaged in a selling spree, ushering a correction in the price of XRP Ledger’s native token.
Daily digest market movers: Ripple on-chain metric shows sell-off by whales
- Santiment data shows XRP investors holding 100 million or more tokens reduced their portfolio by 140 million coins in a seven-day time frame between August 19 and 26. When large-wallet investors drop their holdings, a correction is more likely as their bigger capacity to influence prices increases the selling pressure.
- However, as whales shed their XRP token holdings, retail investors accumulated the altcoins. This is likely one of the factors that help ease the selling pressure on the XRP. The supply distribution chart below shows the change in XRP holdings of investors in different categories.
 [18.09.16, 26 Aug, 2024]-638602795451965093.png)
XRP supply distribution
- Generally, a decline in whale holdings is followed by a correction in the asset’s price, as seen in previous instances in the last six months. It remains to be seen whether the recent decline will lead to a steeper correction for XRP.
- The Network Realized Profit/Loss metric (NPL), which represents the net profit/loss of all assets sold on a given day, also suggests that investors are opting to sell XRP to realize gains. Positive spikes in the NPL suggest that investors on average sold on profits, while negative values represent that traders realized losses.
- Between August 19 and 26, XRP traders consistently took profits, approximately $35.5 million, per Santiment data. Typically, consistent profit-taking increases the selling pressure on the altcoin, thus negatively influencing its price.
 [19.03.54, 26 Aug, 2024]-638602795935316258.png)
Network realized profit/loss
- Ripple CEO Brad Garlinghouse recently shared the speaker lineup for the annual flagship event Ripple Swell 2024. The upcoming event is another key market mover for the altcoin since historically XRP prices have noted heightened volatility before and during the event.
I'm most certainly biased, but this Ripple Swell 2024 speaker list (and @Bloomberg as our official media partner) will be the best yet! https://t.co/tYDOtdKtAT
— Brad Garlinghouse (@bgarlinghouse) August 22, 2024
Technical analysis: XRP loses key support
Ripple is currently in a multi-month downward trend. The altcoin fell significantly from its peak of $0.9380 on July 13, 2023, to the July 5, 2024, low of $0.3823. Since then it has recovered somewhat, trading in a sideways trend for the last month. In case of a correction, XRP could erase another 12% of its value and sweep liquidity at $0.5188, the lower boundary of the Fair Value Gap (FVG) seen in the XRP/USDT daily chart.
The Moving Average Convergence Divergence (MACD) momentum indicator flashes green histogram bars above the neutral line, suggesting that XRP has an underlying positive momentum. However the Relative Strength Index (RSI) reads 52.80 on the daily time frame, close to neutral levels.
Traders need to watch the signal line and MACD line for a crossover. If the MACD line crosses under the signal line, it could give a sell signal.
XRP/USDT daily chart
Looking up, XRP could extend gains to the Fair Value Gap extending between $0.5970 and $0.6217.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
