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Whale Transfers 390 Million XRP To Bithumb — Is Ripple Going To Dump?

Last Updated April 15, 2024 1:18 PM
Nikola Lazic
Last Updated April 15, 2024 1:18 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • XRP dropped 31%, then recovered 22% to $0.51.
  • Large whale deposits may indicate upcoming selling pressure.
  • XRP’s resistance challenges hint at potential further declines.

The Ripple token XRP price experienced a notable decline over the weekend. From April 12, when it was worth around $0.60, it dropped more than 30% to a low of $0.42 on April 13. 

Since then, it has recovered, reaching a high of $0.51 on April 14. However, the market crash might have spooked some XRP whales, making them deposit a substantial sum on the Korean exchange Bithumb. 

These deposits usually indicate upcoming selling pressure, so will XRP make another sharp downturn?

Whale Alert Spots Large Deposit

According to Whale Alert , a significant transaction involving 390.87 million XRP tokens occurred today, April 15. These tokens, valued at approximately $201.1 million, were transferred to Bithumb, the second-largest exchange in South Korea. 

Further analysis reveals that the sender’s address is associated with Bithumb and was activated more than four years ago. After the transaction, the sender’s wallet retained a minimal balance of 19.99 XRP. Meanwhile, the recipient’s wallet now holds a total of 553.17 million XRP. 

This transfer has led to XRP becoming one of the top three most traded tokens on Bithumb. It now accounts for 7.44% of the exchange’s total trading volume of $941 million. Only Bitcoin (BTC) and Tether (USDT) have higher trading volumes on Bithumb than XRP. 

Ripple (XRP) Price Analysis 

XRP’s last significant uptrend began on February 6, starting from a base of $0.50 and climbing to its descending resistance to approach $1 by mid-July 2023, suggesting the start of a potential bull market.

Daily log chart for Ripple (XRP)
Daily log chart for Ripple (XRP)

The price movement followed a five-wave impulsive pattern, peaking at $0.75 on March 11, before declining to the 0.618 Fibonacci retracement level. This level often indicates a reversal in corrective phases, hinting that this drop may be a component of a larger bullish adjustment.

However, this is no longer valid. Yesterday’s drop brought the price to its highly significant ascending support and nearly broke it to the downside. The price proved it can’t successfully embark on an uptrend, because it was under $0.75 for more than 150 days. 

It is attempting to regain some of its value and enter the symmetrical triangle again. However, as it approaches its apex, a breakout to the downside looks more likely. If this does occur, XRP could face more downsides, with its first target being $0.40 and its second at $0.32. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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