XRP has experienced price volatility in the past 24 hours, with a decline pushing it to test the $2.15 support level. Amid this volatility, the recent XRP whale transfer could further threaten this critical support if bearish sentiment persists.
XRP whale activity adds to bearish pressure
According to the Whale Alert update on X, an unknown wallet made two similar transfers in quick succession to Coinbase, a U.S.-based crypto exchange. The XRP whale transferred 26,671,734 XRP in duplicate to the exchange.
The value of both transfers in fiat stands at $117,789,302. This large movement from an unknown wallet suggests the whale may intend to sell. If the XRP whale decides to sell all the transferred coins, the circulating supply on the market could increase.
Such a development could see supply outpacing demand, triggering downward price pressure. Additionally, it could create panic, especially among new investors and cause them to dump XRP, amplifying the price decline.
Typically, market participants track whale movements as their behavior sets the tone for price direction. If retail investors interpret the current whale activity as a presales movement, it will likely spark bearish sentiment. If XRP crashes further, it could slip below the $2 price level.
Investor sentiment weakens as XRP volume drops
However, since the transfer came from an “unknown wallet” to Coinbase, it could be an internal portfolio rearrangement. If that is the case, sales might not be imminent, and XRP liquidity would not increase or cause a massive spike in sell pressure.
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As of press time, XRP has been trading down by 1.70% at $2.20 in the last 24 hours. Investors’ appetite for the coin has declined by a significant 15.99% to $2.01 billion in trading volume within this time frame. This indicates that market participants are approaching the coin with caution.
Investors might continue tracking the XRP trendline, which stifles upward momentum despite attempts to break above the 50 and 100 EMAs. Perhaps if XRP can move past this major block, the price could rebound.
