Ripple (XRP) in Focus as Whales Move Their Tokens Around

Ripple (XRP) is starting Wednesday on a bearish note after two consecutive days of gains – after gaining almost 10% since Monday. At the time of writing, XRP/USD is trading at around $1.45, having reversed almost all of Tuesday’s gains and falling by more than 5% in the past 24 hours.

The XRP token has been under pressure on account of the ongoing lawsuit between the SEC and Ripple, with the SEC recently filing an objection against the company’s co-founders who want the court to dismiss the case against them. In the latest development surrounding the ongoing proceedings, the SEC has also filed an objection filed by holders of this cryptocurrency to intervene, stating that they would be too partial  and could inappropriately expand the issues covered in the lawsuit.

The bearish moves in Ripple on Wednesday could have been triggered by the overall downbeat sentiment in the crypto market after Bitcoin fell below the key $40,000 level. The decline in BTC prices has affected most of the leading cryptocurrencies, and the effect has been felt in XRP/USD as well.

Even as the legal action drags on and keeps the future uncertain for XRP, the cryptocurrency faced some support from increased activity among whales holding Ripple. Data published by Whale Alert reveals that an XRP wallet moved around $93 million worth of Ripple’s tokens into an unknown wallet on Tuesday. This move came one day after another similar move that saw $38 million worth of the cryptocurrency being transferred from a crypto exchange into a wallet.

Key Levels to Watch

Technical analysis of the 4-hour price chart of XRP/USD also indicates a bearish bias in the near-term, with most moving averages indicating selling pressure. Looking ahead, the immediate support level at $1.26 is worth keeping an eye on.

A break below this support level can take Ripple’s value all the way down to $1.16 and possibly even below the key $1.00 level. On the other hand, if we do see some buying interest build up, XRP could make a play at the resistance at $1.58 and possibly rise higher.