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TLDR
XRP price dropped 5% from $0.61 to $0.57 over the weekend
Ripple co-founder Chris Larsen transferred 70 million XRP ($41 million) from his wallet
This was Larsen’s first major XRP transfer since 2013
Speculation arose about potential liquidation on Binance
Near-term outlook for XRP is cautiously bearish, with $0.5575 as key support level
The cryptocurrency market witnessed a notable event in the Ripple (XRP) ecosystem as co-founder Chris Larsen made significant transfers of XRP tokens, coinciding with a 5% price drop over the weekend.
This development has caught the attention of investors and analysts alike, raising questions about the potential impact on XRP’s market value.
On September 17, blockchain tracking service WhaleAlert reported that Larsen moved 50 million XRP from his personal wallet.
50,000,000 #XRP (29,120,312 USD) transferred from Chris Larsen to unknown wallethttps://t.co/D9iopMqePM
— Whale Alert (@whale_alert) September 16, 2024
This initial transfer was followed by four additional movements totaling 20 million XRP in the subsequent days. Altogether, the transfers amounted to 70 million XRP, valued at approximately $41 million at current market rates.
What makes this series of transfers particularly noteworthy is that it marks Larsen’s first major XRP movement from this specific wallet since 2013.
The timing and volume of these transfers have sparked discussions within the crypto community about their potential implications for XRP’s market dynamics.
As news of the transfers spread, XRP’s price experienced a correction. From a recent peak of $0.61 reached on September 21, the price declined to as low as $0.57 by September 23, representing a 5% drop.
This price movement occurred despite the broader cryptocurrency market showing signs of strength following the US Federal Reserve’s decision to cut interest rates by 50 basis points.
The crypto community has been speculating about the purpose behind Larsen’s XRP transfers. Some observers have suggested that the tokens might be headed to cryptocurrency exchange Binance, potentially for liquidation.
XRP Price on CoinGecko
However, it’s important to note that this remains speculation, and the true intent behind the transfers has not been officially confirmed.
It’s worth mentioning that Larsen’s wallet still contains over 450 million XRP coins even after these recent transfers. This substantial holding indicates that the co-founder retains a significant stake in the Ripple ecosystem.
The timing of these events has led some analysts to draw connections between Larsen’s transfers and the XRP price correction. However, it’s crucial to consider that cryptocurrency prices are influenced by a complex array of factors, and attributing price movements to a single cause can be oversimplistic.
From a technical analysis perspective, XRP’s price action has shown some bearish indicators. The Fisher Transform, a momentum oscillator used by traders, has entered mildly overbought territory.
This suggests that buying pressure may be waning in the short term. Additionally, XRP’s price has broken below the mid-band of its Donchian Channels, indicating a potential period of price consolidation.
Traders are now closely watching key support and resistance levels for XRP. The immediate support level is identified at $0.5575, with a more critical support at $0.5027.
On the upside, resistance is expected at $0.6122 and $0.6200. The ability of XRP to hold above the $0.58 level could be crucial for any potential rebound towards the recent high of $0.61.
As of September 23, XRP was trading at $0.57, and the market continues to assess the implications of recent events. The coming days may provide more insight into whether this price correction is a temporary setback or the beginning of a more prolonged trend for XRP.
The post XRP Price Declines to $0.57 Amidst Co-Founder’s Wallet Activity appeared first on Blockonomi.
Nermeen Nabil Khear