The price of XRP experienced its second major crash in February, falling from $2.676 to $2.06 in 10 days, a drop of 27%. The crash came amid a broader market correction that saw $1.5 billion in short and long leveraged positions liquidated in just 24 hours.
In the middle of this, it was revealed that large investors in XRP, or whales, as they are often referred to, have dumped 370 million XRP in the last four days, an average of around $800 million. It is worth noting that only wallets with a minimum of 10 million XRP and a maximum of 100 million XRP made the cut.
Godfrey BenjaminThus, these are millionaire wallets, and the behavior and outlook on XRP by other groups of investors - like retailers who do not hold millions or, vice versa, institutions with billions of XRP - may react to this dip in different ways.
However, the fact is that up to $1 billion of XRP has been sold in just four days by several XRP big shots.
Bullish or bearish?
On the one hand, this reduces the pressure on the price as they have already sold a lot, although their collective balance is still around 6.56 billion XRP, equivalent to $14.4 billion. But if they were willing to sell more, they would have done so already.
On the other hand, this selling reduces the support for XRP on behalf of powerful players, whose holdings can be seen as a sort of pillow for the cryptocurrency, especially in periods of such unease as the recent one.
Arman ShirinyanWhether the backward accumulation will happen now that the price has stabilized a bit, or if this is just a pause before the selling continues, no one knows. But with XRP emerging as the third largest crypto asset on the market, it is worth keeping an eye on.
Dan Burgin
Vladislav Sopov