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XRP’s price is facing a major headwind due to two sources of heavy selling on the chain
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Whales sold $28 million in XRP on average every day over the last 90 days
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Ripple’s co-founder Chris Larsen added to this pressure by moving an additional $140M into exchanges
XRP’s price stability is under renewed scrutiny as ‘whales,’ or large-scale holders continue to sell large volumes of tokens. Data from CryptoQuant’s on-chain shows that XRP whales sold an average $28 million a week for the past 90 day.
This uniform distribution has raised concerns about the sustainability of current prices, especially the $3 support level. A similar selling pattern, in which daily outflows reached $64 million in February, preceded an important price decline.
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XRP, despite the ongoing selling pressure, has shown some resilience. Its price rose by 2% in the last 24 hours to $3.12 at press time. The token’s value has risen to $185.3bn, boosted by a 2.9% rise in the daily trading volume of $6.11bn. The price showed some upward momentum throughout the day, reaching a peak of $3.17 before settling.
You’ll see that the volume-to market cap ratio is at a low 3,3%, which could indicate low liquidity. XRP’s Fully Diluted Value (FDV) is currently $312.8 billion. Out of a 100 billion token supply, 59.23 trillion tokens are in circulation.
Ripple’s co-founders’ large transfers add to supply
The market pressure was further exacerbated by a large XRP transfer made by Ripple cofounder Chris Larsen. Larsen transferred approximately $140,000,000 worth of XRP last week to exchanges, just after the token reached its all-time high price of $3.65. Blockchain trackers confirmed that these transfers originated directly from wallets linked to Larsen.
The movement of a large volume by a key insider has reignited concerns in the community about centralized token control, and how these transactions can influence price trends. Larsen’s massive 2,81 billion XRP is valued at $8.4 billion. On-chain data shows that Larsen retains control of this massive amount.
This ongoing whale activity is causing a noticeable disconnect between XRP’s price performance and the underlying fundamentals of its on-chain. Although the price has shown some intraday power, these on-chain metrics indicate that the bullish trend is waning.
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