- A crypto whale dumped 30.17 million XRP, worth $76.34 million, on January 12.
- The dump triggered a price drop and increased short positions, fueling market fear.
- XRP faces a potential 20% decline, but a shift in market sentiment could reverse it.
On January 12, a crypto whale dumped 30.17 million XRP tokens, worth about $76.34 million. This move triggered a sharp price drop and sparked an increase in short positions. The big question now is whether this will lead to a deeper decline for XRP or if this is just a temporary dip in a volatile market.
Whale’s Impact on Market Sentiment
The whale’s large sale caused XRP to lose over 2.55% in value in just 24 hours. This came shortly after XRP had broken out of a bullish flag-and-pole pattern, which had given hope for further price gains. The timing of the dump was crucial, as XRP was nearing a resistance level at $2.56. Instead of continuing upward, the price stalled and began to fall.
This also impacted the broader cryptocurrency market, with major assets all seeing declines. The increased exchange reserves point to growing fear among traders, and XRP’s trading volume dropped by 30%. This suggests that many traders are on edge and anticipating further losses. Short positions dominate the market, with many investors betting on a decline rather than a rebound.
What’s Next for XRP?
In the short term, XRP seems to be on a bearish path. A 20% drop could bring the price down to $1.92, especially if the daily candle closes below $2.30. However, if XRP can hold above this level, the bearish trend may not play out as expected. Despite the current weakness, a shift in market sentiment could happen soon.
The upcoming inauguration of President-elect Donald Trump on January 20 might influence the market, potentially bringing some positive changes for XRP. For now, the market remains uncertain, with traders watching closely to see what comes next.
