The XRP community is on edge as significant cryptocurrency movements to exchanges surge, raising concerns among investors alike about a possible dump.
Since Tuesday, Whale Alert, a crypto analytics firm focused on highlighting huge crypto transactions, has been reporting a series of substantial transfers involving XRP, totaling over $50 million, to various exchanges.
Notably, on May 29, the firm highlighted a transfer of 28,050,000 XRP, valued at $14.6 million from an unknown wallet to Bitstamp, before detecting another transfer of 23,130,000 XRP, worth roughly $12 million, to Mexico-based crypto exchange Bitso.
These transactions follow a pattern observed earlier on Tuesday, May 28, with a transfer of 19,880,000 XRP, equivalent to approximately $10.4 million to Bitso. Subsequently, another transfer of 29,280,000 XRP, valued at $15.4 million, was sent to Bitstamp.
This consistent influx of XRP into exchanges without corresponding withdrawals has rattled the XRP community, fueling speculations of an impending market downturn. This comes when XRP grapples with establishing a firm footing amid a prolonged consolidation phase, with suppressed volatility hindering clear patterns or direction for the cryptocurrency to follow.
Meanwhile, investors are eagerly banking on factors such as legal clarity for the crypto sector, more so after the conclusion of the Ripple lawsuit with the US Securities and Exchange Commission. Moreover, anticipation mounts as investors hope for a spot XRP ETF approval and the imminent launch of Ripple’s stablecoin.
That said, amidst these developments, Ripple CEO Brad Garlinghouse has expressed confidence in crypto’s impact on the upcoming US elections, with Ripple recently donating $25 million to pro-crypto committee Fairshake. In a statement following the donation, Garlinghouse noted they aimed to counter negative sentiments surrounding crypto, particularly from “backward-looking politicians” like Elizabeth Warren and Gary Gensler, by supporting crypto-friendly legislation and candidates.
Echoing Garlinghouse’s optimism, lobbying groups such as the Blockchain Association and the Crypto Council for Innovation have advocated for favorable regulatory frameworks, culminating in recent successes like the passage of the FIT21 crypto bill by the US House of Representatives.
That said, as the XRP community grapples with the implications of significant whale activity and regulatory developments, the path to a $1 XRP price remains uncertain. Yet, amidst the turbulence, stakeholders remain committed to steering XRP towards stability and growth, underscoring the cryptocurrency’s resilience amidst evolving market dynamics.
At press time, XRP was trading at $0.5179, reflecting a 1.47% price drop over the past 24 hours.
