The price of XRP, a cryptocurrency backed by Ripple Labs, is experiencing a period of uncertainty due to recent large-scale movements by major investors (whales) and significant changes in Ripple’s escrow holdings.
On-Chain Data Show XRP’s Price Being Affected by Escrow and Whale Activity
Data from Whale Alert, a service that tracks cryptocurrency transactions, shows that XRP whales moved nearly 80 million coins. This activity coincided with Ripple unlocking 1 billion XRP from escrow while simultaneously locking 800 million. One whale accumulated XRP during this shuffle, while another offloaded coins to exchanges.
Escrow Activity Further Fuels Speculation On Price of XRP
The weekend also saw a separate transfer of 1.2 billion XRP to Ripple, followed by the unlocking of 1 billion XRP from escrow to unknown wallets and the subsequent locking of 800 million XRP back in escrow. These complex maneuvers have added another layer of uncertainty to XRP’s future price trajectory.
Read More: XRP’s RSI Plunge: A Bullish Signal for the Future?
XRP Price Stalls, But Derivatives Market Heats Up
At the time of writing, XRP’s price sits at $0.5173, reflecting a slight decline of 2.01% in the last 24 hours. The narrow trading range, with lows of $0.5093 and highs of $0.5194, indicates a period of consolidation. Weekly charts paint a similar picture, with XRP’s price stuck sideways.
Mixed Signals Emerge in oDerivatives Market
While the spot market slumbers, Coinglass data reveals a surge in XRP futures Open Interest (OI) by 2.30% to $630.56 million. This increase was accompanied by a staggering 118.50% jump in derivatives market volume to $597.14 million. This suggests heightened activity among derivatives traders, potentially reflecting increased investor interest in XRP.
Technical Indicators Offer No Clear Direction
The Relative Strength Index (RSI) for XRP hovers around 46, indicating neutrality with a slight bearish tilt. This mix of technical signals adds to the overall uncertainty surrounding XRP’s future price movements.
