Whale Alert, in a tweet, has notified the public that an unidentified wallet just moved $100M worth of XRP to cryptocurrency exchange Bithumb. What happened to the coins at this point is yet to be known. There is yet to be a market reaction to the movement.
The transaction can negatively affect the value of the cryptocurrency. The daily volume of XRP transactions on Binance is around 167million XRP tokens. The exact amount of XRP transferred is 88 million XRP tokens.
That is about 50% of the volume of XRP traded daily. Such an ample supply can disrupt price action in a very short time. In just over a week, the token has dropped 19 percent in price. This is opposed to the bullish run the token has endured since September.
Just two days ago, it seemed like there was some positive news for XRP investors. Whale Alert Tracking Service disclosed at the time that 12 million XRP tokens had been removed from the CoinOne exchange to an unidentified wallet. The action followed a global accumulation that was thought to be developing.
It was hoped that this meant evidence of bullish sentiment, despite the massive price drop that hit many significant cryptocurrencies. The withdrawal might have implied a possible upward price movement in the long term. The new information from Whale Alert might now erase all of those. XRP is not the only token that could be faced with a significant sell-off.
Bitcoin Facing Huge Sell-off
Bitcoin is now 20% below its all-time high. It has probably been the roughest week of a long time for the number one cryptocurrency. It seems traders are taking profits from the bullish run.
Now there is probably more incentive for investors to sell-off. Mt. Gox exchanged that shutdown back in 2014 is about making settlements for the assets of customers it lost. It is ready to return over a hundred and forty thousand Bitcoins from the lost sum.
Chief Operating Officer at Stack Funds Matthew Dibb said that there is continuous selling pressure. He expects the cryptocurrency to continue down but believes it will find buying pressure around the 53 thousand dollar price level. He says there is a concern that most of those credited will be wanting to sell. That fear leaves the long-term picture cloudy for investors.
OANDA analyst Edward Moya believes that bitcoin in the long term is still moving up. However, he admits the coming months will be turbulent. The outcome will be decided by whether or not the Fed speeds up the timeline hiking rates. If the Fed hikes the rates, many will want to close their positions on risky assets like Bitcoin.
XRP started the day trading around $1.01. Currently, it has pushed up to around $1.05 . It has dropped over 10 percent from yesterday’s highs. It has been a rough week for most cryptocurrencies. Experts believe that this is a typical market movement, a correction in the overriding trend.