XRP’s recent price rise from $0.48 to $0.52 is under threat as large holders dump their tokens, sparking market alarm.
This sell-off has led to decreased network activity, signaling a potential decline in the token’s value.
XRP’s price recently climbed from $0.48 to $0.52 but a massive token sales by its holders have set off an alarm in the market. The token prices might drop after several number of holders sold their tokens. This sell-off has decreased network activity, suggesting a potential decline.
Many Holders Dump XRP Tokens
Sentiments ( a crypto analysis platform ) data has revealed that addresses holding between 100,000 to 1 million and 10,000 to 100,000 tokens have reduced their holdings putting negative pressure on the token’s market.
Volatility Spikes But Doesn’t Favor Upswing
Despite a one-day spike, the token’s volatility might suggest a downtrend instead of an uptrend indicating the token’s OI(Open Interest) has streamed down which means a decrease in demand from buyers.
When OI decreases, it means more investors are closing their selling. OI shows the total value of all open positions in a contract.
Imagine it as the collective amount of bets on the future price of token. Inclining and Declining of OI can fluctuate the market.
XRP Token’s Network Slows down
The token’s Network has shown a shortage of active addresses. This shortage indicates a decrease in overall trading activity.
The initial drop suggests a potential decline in short. However, a rise in active addresses might increase the token’s price.
Big investors are selling their XRP yet fewer investors are interested and following this. There’s less trading activity with it which means that prices might downs soon.
Always Remember! Cryptocurrency market is volatile and investors should do their own research before investing in the crypto market.
Also Read: XRP Lawsuit Heats Up: Ripple CLO Challenges SEC’s
