Ripple Labs and top whale addresses have transferred 218 million XRP tokens in six transactions. These tokens are worth approximately $81 million at the time of the transactions.
Whales Get Busy As Ripple Unlocks Escrow Tokens
Whale alert reports that XRP whales moved 168 million XRP across five transactions with the first transaction involving moving 50 million XRP from Crypto.com to an unidentified wallet address.
— Whale Alert (@whale_alert) May 8, 2023
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The most recent whale transaction was the transfer of the batch was 28 million XRP tokens from an unidentified wallet to the Bitstamp exchange.
On the other hand, Ripple moved 50 million XRP tokens worth $21.4 million on May 9. Although the tweet from whale alert says Ripple sent the tokens to an unknown address, Bithomp reveals that the receiving wallet belongs to Ripple. Also, this receiving wallet distributed 7.3 million tokens to several addresses.
These 50 million XRP tokens are part of Ripple assets recently released from escrow protection in May 2023. Ripple Labs unlocked 1 billion tokens on May 1 to fulfill its monthly escrow executions. However, they returned 700 million XRP to escrow, leaving 300 million tokens.
Due to the massive move of coins from Ripple, some Twitter users implied the company was dumping the asset. However, another user negated the impression that dumping would require transferring to Ripple or exchanges.
Notably, an attorney supporting Ripple, Bill Morgan, implied that Ripple does not dump its assets in the market. Instead, Ripple buys many XRP tokens for other transactions to meet its growing ODL demand.
XRP On A Path To Recovery?
XRP is experiencing price volatility as it seeks to mount a price recovery. However, its trading volume is down over 20% today, which might hinder its price recovery efforts.
The asset is in a sideways trend, struggling to shake the prevalent bearish pressure. The downward movement has stopped as it bounced off the $0.41 price level.
It is currently trading above its 200-day Simple Moving Average (SMA), a bullish signal for the asset. It implies that its price will likely increase in the long term.
Its Relative Strength Index (RSI) is 33.20 and close to the oversold region, a bearish signal. Notably, this indicator is moving sideways, reflecting the current price behavior of the asset today.
Also, XRP’s Moving Average Convergence/Divergence (MACD) is below its signal line and shows negative values. It implies that the bears are still active in the market.
The coin found support at $0.41353 to move to its current level of $0.43. A decline below $0.41 would drive the asset down to the $0.40141 support and into a downtrend.
It faces the $0.43374 price level as its closest resistance, and a break above it will help the asset to retest the $0.44586 resistance level. Expect further price increases ahead if the bulls prevail.
Featured image from Pixabay and chart from Tradingview