In a tumultuous 24-hour period for the cryptocurrency market, XRP, the digital asset backed by Ripple, faced a significant drop along with many other digital currencies, leading to substantial sell-offs. According to Coinglass data, more than $103 million in long trades were sold off during this period.
XRP experienced a notable mini flash-crash, plummeting to a psychological support level of around 45 cents. However, it stabilized during the early Asian market on Tuesday, trading at approximately 49 cents. All this happened during a time when the overall sentiment in the crypto market was pessimistic and bearish, mainly because of the Israel-Palestine conflict and other global issues.
Whale Watching
A detailed sentiment by market intelligence platform Santiment showed that there were fewer big transactions on the XRP network compared to 2021 and 2022. However, accounts known as “sharks” and “whales,” which hold between 100,000 and 100,000,000 XRP, kept on buying.
These accounts hold $7.89 billion, a notable increase from $7.16 billion a year ago. While these whales and sharks possess approximately 26.8% of the total XRP supply, their overall on-chain activity has substantially decreased over the past 12 months.
Also Read: Top Reasons Why XRP Price May Trigger a Bull Run Prior to the Other Major Cryptos in the Market
Legal Matters Weigh Heavy
The ongoing legal battle between the SEC and Ripple seems to be coming to an end, and signs are pointing toward a positive outcome for XRP, possibly declaring it as not a security. Analysts are hopeful that XRP’s price will go up, similar to what happened during the 2017 bull market. Plus, even though XRP’s price hasn’t changed much since 2018, Ripple has grown and made important partnerships, which could be good for its future.
Things Are Looking Up!
While the crypto market deals with its rapid ups and downs, XRP has shown strength by bouncing back quickly after a short drop. The ongoing accumulation of whale accounts and a potentially favorable legal outcome paint a cautiously optimistic picture for the digital asset. Investors are keeping a close eye on what happens next, considering how world events and legal decisions might affect XRP in the months ahead.
Read More: XRP Community Gears Up for Possible Ripple-SEC Settlement Talks
