By
Mayowa Adebajo
April 24th, 2024
The price of XRP has been impressive this year. However, some fear is setting in as large transactions are recorded on the XRP Ledger.
Members of the XRP and Ripple community are optimistic that 2020 will be a much better year for the asset than 2019 was. Last year, XRP did not sail very smoothly and compared to other assets atop the list of the market’s largest players, it was disappointing. However, if the first two months of the year are significantly considered, XRP might have an interesting year ahead. Already, its 2020 gains are encouraging and might help the XRP price even as the XRP Ledger records heavy activity.
XRP Price Activity
In December last year, XRP seemed to bottom out at $0.17. Since then, it has somehow received a fresh breath of life and has been moving quite impressively. In the two months since then, the price of XRP has jumped over 35% to hit its current level at $0.23. However, it seems stuck there.
A 35% jump in 2 months by any standard is quite impressive. However, members of the XRP community might not be in for a treat as its price prediction doesn’t seem very favorable.
Firstly, an analyst has pointed out that the XRP price movement last month left a wick in its wake. Basically, because the wick was left unclosed at the $0.25 mark, XRP might not be out of its bear trend.
In addition, there is the theory from crypto analyst Cold Blooded Shriller, that there are factors potentially bearish for XRP. There are the resistances that XRP has struggled with and also the existence of a Swing Failure Pattern occurring every week.
Ripple XRP Movement Could Affect Price
Popular Twitter handle XRPL Monitor that continuously scans activity on the XRP Ledger showed that yesterday, Ripple moved a total of 70 million XRP in about 5 transactions and it may influence the price. Each transaction had a maximum of 20,000,000 XRP and was sent in quick succession. Bithomp data showed that at a BitGo wallet received at least 19.3 million XRP, out of the total. The amount at the time was almost $40 million’s worth.
When heavy funds are moved, it sometimes puts a lot of fear in the people’s minds. While there are no signs right now, FUD in the near future might not be surprising. This is because, in addition to the recent transfers, Ripple moved 1 billion XRP in several small transactions, from its escrow wallet.
It is unsure what exactly the funds would be used for as there are a number of possibilities. Ripple does not have to explain what the funds are needed for. Regardless, the community is already worried that the activity will plunge prices.
Could Bitcoin Help?
While the connection might be a little far, there is a chance Bitcoin could save the day. Bitcoin usually carries most of the market on its shoulders so that they rally when it does. Many analysts believe that a Bitcoin rally might be imminent. There’s a good chance XRP could also benefit.