- Ripple whales sell over 200 million XRP tokens in July, while retail investors and whales in other cohorts accumulate.
- XRP rallied 23% in the past seven days, the altcoin erased recent gains as traders engaged in profit-taking.
- XRP trades around $0.5600 at the time of writing.
Ripple (XRP) trades around $0.5600, erasing recent gains on Friday. XRP token holders have consistently realized gains on their holdings in the past week, increasing the selling pressure on the altcoin and prompting a correction.
On-chain data and whale activity shows a change in the supply distribution, larger cohort of whales are distributing their XRP, while smaller cohorts accumulate.
Daily Digest Market Movers: Ripple whales sell over 200 million XRP
- Santiment data shows Ripple’s large wallet investors holding upwards of 100 million XRP in their wallets have sold over 200 million tokens in July 2024.
- In the same timeframe, Ripple wallet addresses in other cohorts, holding between 100,000 and 100 million XRP have accumulated XRP, as seen in the chart below.
- Typically, accumulation is a bullish sign for XRP. While the largest whale cohort is shedding their holdings, smaller cohorts are accumulating, likely anticipating a recovery in the future.
 [19.27.39, 19 Jul, 2024]-638569963538217080.png)
XRP address cohorts and supply distribution vs. price
- The US Securities and Exchange Commission (SEC) vs. Ripple lawsuit has no new update from either side. XRP traders are watching the lawsuit closely for a final ruling. Attorney Fred Rispoli predicted the end of the SEC vs. Ripple lawsuit in July 2024.
- As of Friday, July 19, profit-taking by investors grinds to a halt. The Network Realized Profit/Loss metric, used to determine the net profit/loss of traders, shows XRP traders realized nearly $500,000 in losses on the day.
 [19.32.02, 19 Jul, 2024]-638569963839500434.png)
Network Realized Profit/Loss vs. price
Technical analysis: XRP could extend losses by 15%
Ripple suffered a decline, XRP corrected to $0.54 low, early on Friday. The altcoin erased recent gains and is likely to extend losses by nearly 15% and sweep liquidity in the Fair Value Gap (FVG) between $0.5136 and $0.4780.
Once Ripple sweeps liquidity in this FVG, a return to $0.6058 is likely. This represents the 61.8% Fibonacci retracement of the decline from the March 12 top of $0.7696 and the July 5 low of $0.3823.
XRP/USDT daily chart
Ripple could find support at $0.5205, the 38.2% Fibonacci retracement of the decline from March 12 to July 5.
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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