XRP Price at Cross Roads as Whales Dump Ahead of SEC Settlement

The cryptocurrency market has been trending down for almost a month, and the bearish sentiment continues to grow. Recently, XRP whales have caused worry within the crypto community by offloading millions of XRP just days before Ripple is expected to pay a $125 million settlement to the U.S. SEC.

Everyone is wondering – is the worst yet to come? What lies ahead?

Read on for some answers.

Whale Moves Shake the Market

On September 2, on-chain data from Whale Alert revealed that nearly 1 billion XRP was transferred to Ripple in a series of transactions. Among these, a notable dump of 20 million XRP was made by a well-known whale address, depositing the funds into the Bitstamp exchange.

This massive movement has intensified bearish sentiment in the market, with concerns mounting over the asset’s stability as the $125 million settlement payment looms.

Uptrend or Sell-Off? Key Indicators to Watch

Adding to the uncertainty, Ripple recently unlocked 1 billion XRP from escrow, only to lock 800 million XRP back shortly thereafter. These significant movements have led to speculation about Ripple’s strategy and the potential impact on XRP’s value as the SEC settlement nears.

Currently, XRP’s price is slightly below the 50-day simple moving average (SMA) of $0.577, signaling a bearish trend with potential resistance at this level. Conversely, the 200-day SMA stands at $0.547, indicating a bullish long-term trend and suggesting that XRP is near a crucial support level. Staying above this SMA could be critical for future price gains.

XRP Price Takes a Nosedive

Heavy selling by whales has already affected XRP’s price, which has dipped 1.5% to $0.5503. The coin’s 24-hour price range fluctuated between $0.5448 and $0.5618, with today’s downward movement primarily driven by intensified selling pressure. Despite this, some analysts remain optimistic about XRP’s long-term prospects, with predictions suggesting that the token could rise as high as $4, driven by Ripple’s new banking initiatives.

Mixed Market Data – What Is It Telling Us?

Market data presents a mixed picture for XRP. Coinglass reports a 1.15% dip in open interest (OI) for XRP, now standing at $608.68 million. Concurrently, derivatives volume surged by 65% to $823.89 million, reflecting heightened trading activity.

The Relative Strength Index (RSI) for XRP is currently at 42, indicating that the asset is neither overbought nor oversold. As the community watches closely, the impact of these whale movements and Ripple’s impending settlement could significantly influence XRP’s trajectory in the coming days.

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It’s been rough for XRP. Can it emerge stronger? We’ll have to wait to find out.