On August 14, a major transaction in the XRP cryptocurrency was recorded. An unknown user transferred 20 million tokens ($5.3 million) from Nexo to Kraken exchange.
Typically, such transactions indicate that the whales plan to dump the rate of crypto assets. Coins were transferred at 19:01 UTC. A sharp drop in the value of XRP occurred yesterday at 20:00 UTC; the digital asset fell in price by 10.7% (from $0.288 to $0.257). Late at night, the XRP price continued to decline.
The XRP trade amounted to $2 billion volume over the past day, and, most likely, the transferred coins have already been sold. Now whales will plan to load up, hence a price correction by 3-5% is inevitable.
A bearish trend dominates the market given the dynamics of the exchange rate over the past three months. In this regard, the price of XRP could continue to fall.
XRP Price Analysis
There was some stability and maintaining a price position above $0.2900 for XRP.
However, XRP was unable to maintain support levels at $0.2920 and $0.27. As a result, the price dropped sharply below $0.26. Over the past few sessions, the price of Ripple’s XRP has fallen by more than 15% and exchanged for $0.25. A new low was formed around $0.2450 before the digital currency propelled a bit higher.
XRP could be set to overcome the $0.25 price level, as well as the correction level of the recent fall from a maximum of $0.2975 to a minimum of $ 0.2450. However, XRP faced many obstacles on its way up around the $0.27 level. It is also worth considering the formation of a short-term breakout model.
In this case, the next support is around the level of $0.26 as there’s already a risk of some fluctuation up to $0.2350.
It is also worth noting that the nearest pivot point is at around $ 0.13, i.e. the virtual currency may well fall in price by half according to Peter Brandt. The moving averages are in the red zone, the three main indices (relative strength, commodity channel and average directional) are located in the neutral zone.
Nevertheless, experts emphasize that such a drop will not be long-term for Ripple’s XRP, and the cost will be able to recover again.
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