The XRP price has yet to recover from the latest exploit, which resulted in Ripple’s co-founder Chris Larsen being hacked and 213 million XRP worth $120 million carted away. This unfortunate incident has had a significant impact on the sentiment surrounding XRP and has led to a decline in its price. Investors and traders are wary of the security vulnerabilities within the XRP network, which has further dampened the market mood.
On-chain data points to XRP whales already exiting their positions in the past few weeks, adding to the selling pressure. Whales, referring to large holders of cryptocurrencies, often play a pivotal role in determining the market sentiment. The recent transaction of 29 million XRP tokens transferred from an unknown wallet to the crypto exchange Bitstamp, as reported by WhaleAlerts, is a clear indication that whales are liquidating their holdings.
XRP has been under selling pressure in the past week, with a 5.51% decline in a 7-day timeframe. Furthermore, recent data from whale alerts revealed that 29 million XRPs worth $14.7 million were sent to Bitstamp in one transaction, while another transaction involved the transfer of 28.85 million XRP worth $14.6 million. These transactions signal the intent of whales to dump their holdings, which could potentially result in further declines in the XRP price.
Santiment’s on-chain data analysis, specifically the Supply by Addresses metric, provides further insights into the declining market sentiment. The number of wallet addresses holding more than 1 million XRP tokens has decreased from 1,986 on January 28 to 1,957 on February 3. This indicates that 29 whale wallets have reduced their holdings during this period. While the metric currently stands at 1,962 wallets, it still suggests a steady decline in investor confidence.
XRP recently experienced a significant drop below $0.5 following the news of the hack. However, the price has since made a slight recovery, currently trading at the $0.50 level. Despite a 27.43% increase in trading volume, the XRP price has not been able to post substantial gains in the past 24 hours, with a 0.35% decline. Over a larger timeframe, XRP has witnessed a 10.6% decline in 30 days, with lower highs and lower lows being formed. If the selling pressure persists and the minor support at $0.501 fails to hold, XRP could potentially break below and form a lower low around $0.48.
According to crypto analyst EGRAG CRYPTO, known for his bullish stance on XRP, the current decline presents a perfect opportunity to accumulate more tokens. He suggests that the XRP price could spike to $22 in the near future. However, it is crucial to conduct thorough research and exercise caution when making investment decisions, as the cryptocurrency market carries inherent risks.
The XRP price has taken a hit following the recent exploit and the subsequent exodus of whales from the market. The decline in the number of wallet addresses holding significant amounts of XRP further adds to the negative sentiment. Although there have been attempts at recovery, the overall trend indicates ongoing declines. It is vital for investors to stay informed and make decisions based on careful analysis and risk assessment.
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