Ripple’s XRP Hit by Wave of Whale-Driven Sell-Offs
XRP faced an even more pronounced bearish trajectory, with large whale movements and on-chain data painting a grim picture.
Quick overview
- XRP is experiencing a bearish trend, with significant whale movements and concerning on-chain data.
- Over 720 million XRP tokens were moved from cold storage, indicating distress among holders and a potential for further declines.
- Analyst Versan Aljarrah suggests that XRP's price does not reflect its true utility and adoption due to external barriers suppressing its value.
- Market sentiment remains cautious, with indicators suggesting that XRP may be overvalued and potential selling pressure from large transfers.
Live XRP/USD Chart
XRP faced an even more pronounced bearish trajectory, with large whale movements and on-chain data painting a grim picture.
Over 720 million XRP tokens were reported to have been moved out of cold storage, and the MVRV ratio indicated growing distress among holders. Technical analysis by market observers highlighted a TD Sequential sell signal on the 3-day chart, reinforcing concerns about further downward momentum.
XRP investors were urged to remain cautious, as the risk of continued declines appeared high with key support levels now at $2.40 and below.
Crypto analyst Versan Aljarrah believes that XRP’s current price does not accurately reflect its utility, adoption.
He argues that the token’s true value is being suppressed by what he describes as “layered, coordinated” mechanisms across exchanges, regulations, and liquidity infrastructure.
According to Aljarrah, if these barriers did not exist, the price of XRP (XRP-USD) would be significantly higher than its current value of approximately $3.30, especially after a remarkable 600% surge since November.
This perspective discomforted some XRP supporters who view the token as being deeply undervalued relative to its potential.
On the other hand, skeptics highlight other metrics to support their viewpoint. For instance, on-chain data indicates that XRP’s Network Value to Transaction (NVT) ratio to 477, which could suggest that the token is overvalued compared to its activity.
Additionally, its Market Value to Realized Value (MVRV) ratio exceeds 400%, indicating that most holders are sitting on substantial unrealized gains—gains that could be at risk if market sentiment shifts.
The broader market sentiment, as reflected by the Fear and Greed Index, leaned toward caution and bearish expectations. The continued outflows from altcoins and the dominance of cold wallet activity underscored the preference for risk mitigation in the current climate. Whale movements and large on-chain transfers added to the uncertainty, with many investors interpreting them as signs of potential selling pressure
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