Ripple whales have gathered about 1 billion coins after the cryptocurrency made huge gains yesterday. However, the momentum seems to have lost its strength, as shown by the fact that the price of the asset is still going down. This shift raises concerns about XRP’s price movement, making it crucial to analyze the current trend and predict what lies ahead for the crypto market.
With their latest buying trend, Ripple whales have once again been in the news for XRP. A famous market analyst Ali Martinez noted that trend, whereby consumers in the market are once again interested in the asset.
According to Martinez, whales purchased nearly 1 billion coins since yesterday when the price shot up more than 25% and was approaching $3. However, even though there was a significant influx of XRP whales, the momentum soon faded.
Why the Price of XRP Drops
XRP price dropped 13% today to $2.31, with trading volume dropped 30% to $13.9 billion. Interestingly enough, the asset’s 24-hour high was $2.7 and its 24-hour low was $2.23. Also, XRP Futures Open Interest dropped 23% to $3.16 billion, which shows that investors are pulling back from high-risk bets.
Even though XRP whales bought a lot, investors started to worry about the market’s future. Also, it comes at a time when other digital assets are being sold off. Since yesterday, over $1 billion has been taken out of the crypto market.
Why Is the Crypto Market Going Down?
It’s possible that Trump’s tariffs on Mexico and Canada, along with other economic problems, have likely caused the market crash. This event, along with other problems in the economy as a whole, has made investors nervous, which has led to a huge selloff in the market.
Also, Donald Trump’s recent announcement about the US Crypto Reserve didn’t have much of an effect for long. At first, it caused prices to go through the roof, but some investors may have taken the chance to make a quick profit, which could lead to selling pressure in the market.
What Will Happen Next With Crypto?
The recent drop in XRP could also be because the case between Ripple and the SEC is taking longer than expected to be resolved. People were hopeful when Trump said that XRP would be added to the US Reserve as an asset, but legal experts have denied claims that this will speed up the resolution of the XRP lawsuit.
As the price of XRP fell to $2.3, experts pointed out important levels of support for the coin. For context, Rose Premium Signals said that holding the $2.40 level is important in a bearish scenario and If the price falls below this level, it could go below $2.
Source: Rose Premium Signals
In the same way, EGRAG CRYPTO said that the cryptocurrency is likely to test the $2.3 and $2.2 levels again. But the price of Ripple’s coin is very close to $2.2, which could be very helpful for a strong recovery.
That being said, the cryptocurrency needs to stay above $2.2 in order for a strong recovery to happen. Even though most experts are still positive about the coin’s long-term path, some have warned that it could fall below $2 if the bears keep winning.
