Ripple’s Sell-off Sparks Market Turmoil—Who’s Selling and Why?
After struggling to rally beyond the resistance range between 60 and 63 cents since mid-July, Ripple-backed XRP has signaled further short-term bearish sentiment. With a fully diluted valuation of about $54.3 billion and a daily average trading volume of around $1 billion, the large-cap altcoin dropped approximately 4 percent since this week to trade about 54 cents on Friday during the early European session.
However, the XRP bleeding against major pairs, including Bitcoin and the US dollar, seems to have approached the end. Furthermore, the crypto industry is expected to register bullish sentiment in the fourth quarter, especially if the U.S. Fed initiates the much-anticipated interest rate cuts.
XRP Whales Increases Marker Selloff
The entire crypto market has suffered bearish sentiment akin to the stock industry in recent years. Despite the closure of the Ripple vs. SEC case, on-chain data shows that more whales have been dumping their holdings into the secondary market.
For instance, Ripple transferred 100 million XRP, worth over $54 million, to an unknown address. Several other top XRP investors deposited huge amounts to Bitso and Bitstamp exchanges earlier today.
Meanwhile, Ripple has been criticized for constantly selling XRP monthly to fund its operations. In its defense, Ripple has announced several plans to develop XRPL to become a Web3 and smart contract hub soon.
Midterm Expectations
In recent times, the XRP price has oscillated inside the apex of a macro triangular pattern, indicating an imminent breakout in the near term.
The altcoin, however, has signaled midterm bearish sentiment, whereby a retest to the major support level of around 44 cents is highly likely.
However, a rebound and consistent close above 65 cents will invalidate the bearish sentiment and set the stage for a fresh macro parabolic bull rally.
