XRP Price Plummeted to 3-Month Low Amid Surge in Whale Sell-off

Major Investors Moving Away From Ripple (XRP)

Recently, there have been reports indicating that big investors are divesting from Ripple (XRP) due to ongoing legal issues and a decline in market confidence. This has resulted in a significant loss of major investors, causing XRP’s price to drop to a 3-month low of $0.50 after reaching its all-time high.

Whales Dumping XRP

During the current crypto slump, whales are choosing to dump Ripple (XRP) from their portfolios due to regulatory issues and the ongoing market correction, which is leading to cautious investor behavior and doubts about XRP.

Despite a buy signal on the 3-day chart, indicating a potential rebound, further analysis of XRP’s technical indicators shows a more complex situation.

On the daily chart, the Relative Strength Index (RSI) signals oversold conditions, typically indicating a bearish trend, which may trigger buy signals. Additionally, the Moving Average Convergence Divergence (MACD) moving below the signal line is reflecting a negative trend dominated by bearish forces.

Traders Incurring Huge Losses

The drop in XRP’s price has not only affected short-term traders but also impacted the overall profitability of asset holders. According to Santiment’s data, most traders would incur losses of 5.61% at the current price if they decide to sell their coins.

These market conditions may discourage short-term traders from investing in XRP. However, experienced traders who believe in the coin’s potential success might see this as an opportunity to buy XRP at a lower price and strengthen their positions.

Despite the price drop, there was a noticeable increase in transactions by big XRP holders (whales). However, there wasn’t a substantial rise in the number of new large XRP holders, but whales didn’t massively accumulate more XRP during this price decline.

Hot Take

While XRP has experienced a significant decline due to legal challenges and investor divestment, it may still present an opportunity for experienced traders to strengthen their positions at a lower price.

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