Ripple holders experienced significant losses on Monday, 21st November. The loss followed XRP’s roughly 7% decline which was a result of market tensions, most of which was triggered by the collapse of FTX. While the coin experienced a price slump, Ripple whales continuously bartered off their assets.
Market anxieties hit XRP
Increased pressure and anxieties in the crypto market caused a significant reduction in the market capitalization of all digital currencies globally.
The general market cap fell roughly by 2.05%, estimated at $802.43 billion. XRP, which holds the rank of the seventh biggest cryptocurrency in the world according to market data, was faced with even greater pressure, and dropped by almost 7% in contrast to other cryptocurrencies.
In addition, as investors anticipate the final verdict from the U.S Securities Exchange Commission’s (SEC) lawsuit against Ripple, the price of XRP has dramatically depended on Ripple whales and the cryptocurrency’s long-term holders.
The price of XRP followed the market trend and acceleration the same way significant altcoins imitated BTC despite the more volatile market.
On December 12th, 2020, the SEC filed a lawsuit against Ripple Labs, alleging that investors in the US and other nations across the globe were sold XRP tokens as part of unregistered security sales by Ripple.
According to statements from the SEC, the amount of unregistered XRP trades was roughly $600 million. While the co-founder of XRP, Chris Larsen, and the former CEO, Brad Garlinghouse, who are defendants, did not meet the requirements to receive a registration immunity, automatically infringing on the federal securities laws’ registration requirements.
Ripple Holders lose as whales take off
Long term Ripple holders experienced casualties, as seen by the decline in the market price to acknowledged prices, or MVRV.
According to Santiment statistics, when price efforts eroded, MVRV rates for ten-year, five-year, two-year, 180-day, and 90-day periods all decreased.
Furthermore, information from Whale Alert showed that XRP whales had been selling off their assets when an oversupply of the XRP cryptocurrency struck the market. More than 296 million XRP, estimated at $113.75 million, was transported on November 19 between different unidentified wallets.
Recently, a transfer from an unidentified wallet to Bitstamp on November 21 totaled about nine million XRP, estimated at $17.30 million.
A similar bearish development was the one billion XRP dump by the largest whale group over the previous ten days, which consisted of tokens ranging in value from 10 million to infinite.
The coin’s near-term outlook turned more bearish as the price of XRP traded at $0.3544.
With long term investors experiencing losses and whales cutting back on their considerable holdings, the price of XRP may be gearing towards more extensive declines.
If the bearish assumption is proven incorrect and volatility raises the XRP price, more outstanding bulls may aim for the $0.3800 opposition level.