Ripple XRP has sunk below the critical $0.50 level for the first time since mid-October, sparking questions about whether large network participants view the dip as a buying opportunity. Blockchain analytics firm Santiment spots noteworthy signals that XRP may be gearing up to rebound, assuming the broader crypto market stabilizes.
On Wednesday, XRP slid roughly 3.6% to trade hands around $0.49 alongside broader altcoin weakness. The drop means the sixth-largest cryptocurrency by market value now sits at its cheapest level in over four months after hitting 2022 highs above $0.56 in the wake of Ripple’s legal victory over the SEC this summer.
Also read: Why Chainlink (LINK) Is Gearing Up For $25-30 Breakout In Coming Months?
After an #altcoin slide Wednesday, #XRPLedger is at risk of falling below a $0.50 market value for the first time since October 19th. Interestingly, however, yesterday had the most $XRP $1M+ whale transactions on the network (217) since prices skyrocketed after a
(Cont)
pic.twitter.com/1xa0PHCzcb
— Santiment (@santimentfeed) January 31, 2024
Whale transactions surge despite price drop
Yet despite the deteriorating price action, Santiment highlights that Ripple XRP just witnessed its highest number of whale transactions above $1 million since the post-lawsuit price explosion in July. Specifically, the researchers identified 217 such large trades on February 1st, indicating significant network activity from deep-pocketed holders even as prices dropped.
Moreover, further data reveals these major players appear unphased by the sell-off. As of Wednesday, wallets holding at least 10 million XRP—dubbed “XRP Whales” by Santiment—account for 67.2% of the available token supply.
Also read: Shiba Inu Weekend Price Prediction: Can SHIB Delete a Zero?
That represents the highest ownership share from these influential market participants since New Year’s Eve 2022 when XRP last traded around current prices.
XRP shows mixed signals
As Santiment noted on X, violation of the psychologically important $0.50 level risks accelerating selling momentum, especially if Bitcoin fails to steady broader crypto markets.
News also broke Wednesday that Ripple co-founder Chris Larsen’s wallet was hacked for roughly $112 million worth of XRP tokens. Although Larsen stated that Ripple itself remains secure, his high-profile breach may rattle investor confidence. Following the reports of the hack, XRP briefly dropped over 5% to plumb new multi-month lows.
Also read: XRP: 3 Key Warning Signs For Investors
Yet if whales continue accumulating, XRP may be laying the groundwork for its next bullish impulse. Whether sellers have exhausted themselves or merely paused their assault remains to be seen.
