After incurring significant upwards momentum yesterday, XRP has been able to find some stability as the aggregated crypto markets face a bout of consolidation, although Ripple – the largest XRP owner – did transfer one billion XRP earlier today, which may mean that a fresh sell-off is imminent.
It is important to note that these tokens are not necessarily being sold on the market as part of Ripple’s quarterly XRP sales, but they could scare some investors and contribute to the running narrative that has been plaguing XRP regarding Ripple’s quarterly sales being the primary source behind its lackluster price action.
XRP Dips 2%, But Still Up Significantly from Weekly Lows
At the time of writing, XRP is trading down just under 2% at its current price of $0.25, which marks a slight decline from its recent highs of roughly $0.26 that were set at the peak of the run it experienced yesterday.
XRP has been closely tracking the aggregated crypto markets as of late, and it is highly probable in the near-term that it will continue to closely follow Bitcoin’s price action, which could mean that it will face a consolidation period in the coming days and weeks.
Loma, a popular crypto analyst on Twitter, spoke about XRP’s recent price action in a tweet, explaining that a break above its near-term resistance level that exists at roughly 0.00004 BTC – which is slightly higher than its current price of 0.00003 BTC – could spark a massive rally.
“$XRP: Next entry will either be at the bottom of that support block (~2888) or if we break above ~3300. Unpopular Opinion: You won’t get a dip IF this takes off. Good luck getting perfect retest entries,” he explained while referencing the below chart.
Although XRP does typically experience massive parabolic rallies when it does garner significant buying pressure, it remains unclear in the near-term if it will be able to do this while Bitcoin trades sideways within the lower-$8,000 region and while Ripple continues their quarterly token sales.
Whale Alert noted in a tweet today that Ripple is currently transferring one billion XRP – worth over $256 million – out of escrow.
It remains unclear where these tokens are heading, but it is likely that many of them will see their way onto the public market, which could suppress any upwards momentum that the crypto could otherwise face in the coming days and weeks.