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Large XRP token holders are selling tokens at a record-breaking rate
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XRP has risen over 500% since November last year
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A single-day sale exceeded $120 Million
Miles Deutscher, a cryptocurrency analyst, highlighted that XRP whales were selling their holdings to levels never seen before. This selling activity intensified after a significant price rally in which XRP surged by over 500% since November 2024.
Deutscher suggests XRP is undergoing a phase of distribution, a time when major investors liquidate positions, signaling a possible price drop.
Over $120 Million in XRP sold in Single Day
A single-day sale of more than $120 million highlights the size of this distribution.
XRP has had a great run since November. It experienced a remarkable rise, rising from $0.52 to more than $2. Currently, it is sitting at $2.67.
It’s too early to tell what will happen but it is common for investor confidence to be affected when whales sell large quantities. This can cause more people to sell, including regular investors. The liquidation of large holdings can also cause price swings and a sudden drop in price.
Related:XRP whales flood Binance: 2,66 Billion Tokens Moved During Price Swings
Distribution Phase May Signal Limited Benefits
It’s important to note that a distribution stage suggests that whales expect limited short-term gains, which prompts them to realize profits.
The local distribution phase is usually when large investors begin to sell their holdings slowly, often after a price rally.
If the demand is high, XRP could enter a sideways motion, also known by the term consolidation. If demand dwindles, it could lead to a price drop.
The impact of the Strategic Crypto Reserve on XRP is mixed
This news about whale sales comes a day following the announcement by US President Donald Trump of the creation of a US Strategic Crypto Reserve, which specifically named XRP among the digital assets that would be included. Bitcoin, Ether and Cardano have also been included.
The announcement caused a significant surge in XRP, with its market cap increasing by $44 billion in an hour. XRP’s price also increased significantly, reaching a high of $3.
Related:XRP whales trigger excitement: price rally yet to follow
XRP’s inclusion in the strategic reserve is a controversial issue. Some industry leaders have embraced a multichain approach while others have criticized the choice of certain altcoins.
Regardless of what the general consensus is, these events highlight XRP’s changing role in the cryptocurrency world. It’s still unclear how these developments will affect XRP in the long run.
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