XRP Buyers Succumbed to the Selling Pressure

Bears have taken over the cryptocurrency market over the last week. Nearly all coins like Bitcoin, Ethereum, and Solana are down, and XRP is no different.

The cryptocurrency market saw substantial bearish activity last week, with most coins encountering difficulties. Among them, XRP has also been struggling.

As the third-largest cryptocurrency by market capitalization, XRP attempted to rally above the $2.00 mark on Thursday. However, despite the efforts of buyers to defend this level, the coin ultimately faced strong selling pressure, causing it to drop below the crucial psychological barrier.

As of Friday morning, XRP is trading at $1.96, showing a decrease of 8.81% in the last 24 hours, according to CoinMarketCap.

While the overall scenario for XRP is not positive, its performance compares favorably to other altcoins in the top 10.

In the 30-day period, XRP's 19.13% depreciation is less significant than the losses seen in Ethereum and Solana, which depreciated by 30.98% and 41.74%, respectively.

Furthermore, when considering the year-to-date performance, XRP's losses are minimal compared to the competition. Since January 1st, Ripple's altcoin has depreciated by only 4.94%, whereas assets like Ethereum have faced more substantial losses, reaching 45.08% in the same timeframe.

Recently, a report by Whale Alert regarding a transaction involving $365 million in XRP has sparked speculations about whales investing in XRP.

According to a post by Token Cannoli, an anonymous investor has moved 167,075,744 XRP to an unknown wallet.

When a whale transfers money from one anonymous wallet to another, it basically can mean anything. Differently from when money is transferred to an exchange, which increases the likelihood of a token swap or even withdrawal, such transfers between anonymous wallets remain open-ended.

However, despite the lack of clarity regarding the reason behind the large transaction, it has sparked discussion among members of the crypto community on X, formerly known as Twitter.

One X user pointed out that the transaction was executed at a low price, and it's unclear where the funds are going. Another user joked that the whale must be planning to buy a "small country" with his XRP holdings.

Earlier this week, data from Token Terminal showed that major cryptocurrency whales prefer holding onto Bitcoin, Ethereum, and stablecoins.

According to movements from wallets holding $10 million or more in XRP, whales spiked their token acquisition two times last week.

However, the selling pressure over the currency continued throughout the week.

While this week’s massive dent in the market could prove shortlived (or not), next week’s FOMC meeting will certainly draw a lot of attention from investors.

If you’re interested in XRP, make sure to follow our daily XRP analysis. Also, if you’re looking for a platform to trade, check out our partner Blofin.