Coinspeaker
XRP Price Faces Bearish Sentiment as Bitcoin Teases Below $56K amid Heightened Whales’ Selloff
Amid the heightened fear of further crypto capitulation in the short term, Ripple Labs-backed XRP price dropped around 5 percent in the past week to trade about 53 cents on Friday during the early New York session. The large-cap altcoin, with a fully diluted valuation of about $53.5 billion and daily average traded volume of around $1.1 billion, is on the brink of further capitulation if Bitcoin (BTC) price continues with bearish sentiments.
Moreover, the altcoin industry has registered a positive correlation with Bitcoin’s price action in the recent past. If Bitcoin price falls below $50k in the midterm, amid heightened fear of September capitulation, XRP price is likely to retest the support level of around 44 cents before rebounding in the fourth quarter.
From a technical standpoint, XRP price could rebound from the current support level and rally towards an all-time high in the near term. Furthermore, the weekly Relative Strength Index (RSI) has been hovering above the 50 percent level in the recent past.
XRP Whales Capitulate
Due to a lack of clear short-term signals for the XRP price action, on-chain data shows more whale investors have been fleeing the market. Moreover, investors could be getting wary of Ripple dumping into the secondary market through its affiliated exchanges. Earlier on Friday, Ripple transferred 100 million XRP, worth about $54 million, to an unknown address.
🚨 🚨 🚨 100,000,000 #XRP (54,594,473 USD) transferred from #Ripple to unknown wallethttps://t.co/5UoknxkDkv
— Whale Alert (@whale_alert) September 6, 2024
Meanwhile, several whale investors have been spotted making huge deposits of XRP to Bitso, Binance, and Bitstamp in the past few days. In the past 24 hours, around $75 million worth of XRPs have been deposited in Bitso and Bitstamp by different whale investors.
The notable increase in XRP deposits is perceived as a bearish sentiment, which could add more pressure on the little buyers.
Ripple Natures Web3 Market
Ripple has accelerated its XRPL development plan following the conclusion of the lawsuit filed by the U.S. SEC. The company has announced plans to upgrade the XRPL network to support smart contracts and web3 protocols in addition to an EVM chain.
The company has been testing a fiat-backed stablecoin on the XRPL network to facilitate its cross-border payments operations. With other projects in the pipeline, Ripple will continue to be an integral component of the web3 industry in the United States and globally.
Market Picture
As a major blockchain company in the United States, Ripple continues to play a crucial role in the upcoming general elections through funding and endorsement. The company has already invested millions of dollars in the Super PAC Fairshake geared towards supporting candidates who align themselves with the crypto industry.
Meanwhile, the company has been pushing to finalize the repayment plan with the US SEC after the court concluded the case last month.
XRP Price Faces Bearish Sentiment as Bitcoin Teases Below $56K amid Heightened Whales’ Selloff
