Ripple's cofounder fell victim to a security breach that led to the unauthorized sale of over 200 million XRP. The transactions, which occurred between 11:00 a.m. and 10:00 p.m. UTC, resulted in a net sell-off of nearly 100 million XRP, primarily on the exchanges Binance and OKX. This series of large-scale disposals culminated in a significant net outflow in the XRP Spot Cumulative Volume Delta, which tracks the net buying and selling pressure.
The value of the XRP lost in this illicit sell-off is substantial. Based on the CVD's net sell-off figure, and considering XRP's average market price during the time of the transactions, it is estimated that the hacker managed to liquidate tens of millions of dollars worth of XRP before the accounts were immobilized.
The freeze on the hacker's accounts was a reactive measure to curb further unauthorized liquidations, but not before a considerable sum was siphoned off.
This incident casts a shadow over the XRP market, raising concerns about security and the swift action required to mitigate such exploits. However, the market's reaction has been somewhat restrained, indicating a maturing landscape that is learning to weather such storms with more resilience.
Turning to the price analysis of XRP, the asset has faced downward pressure amid these events. XRP has been trading with a bearish bias, recently hovering around the support level of $0.5.
A breach below this support could potentially lead to further declines, with the next critical support level lying at $0.5. On the upside, resistance is forming near $0.5692, which XRP would need to surpass to signal any potential recovery.