TL:DR;
- Ripple’s cross-border token is taking the ongoing market crash quite severely, with its price dumping by over $1 within a day.
- Although it has bounced off to above $2 now, there’s a warning sign that suggests its run could have been halted, at least for now.
The chart above paints a highly painful picture. XRP neared its all-time high on January 17 and peaked at $3.39, which was just 1% away from the 2018 record. Although it failed there, it mostly maintained its valuation above $3 for the next couple of weeks.
That all changed on Sunday morning when it dumped from $3.07 to $2.7 at first before it took another beating to $2.5. Nevertheless, it jumped back 10% before the Monday morning massacre brought back the pain.
Within hours, Ripple’s token plunged from $2.7 to under $1.8 (on Bitstamp), which became its lowest price level since late November when Gary Gensler announced his departure from the SEC.
XRP has managed to recover some of the losses, at least for now, and sits above $2.2 as of press time. Yet, this is still a 24% daily drop, which has driven its market capitalization to well below $130 billion.
Consequently, USDT, with a market cap of $140 billion, has once again surpassed XRP as the third-largest crypto asset.
What’s even more worrying for XRP is the fact that whales have reversed their strategy. As reported yesterday, these large market participants had offloaded over 70 million XRP in 96 hours. However, further data from Ali Martinez shows that they have continued to sell off their tokens by dumping another 130 million in a day over the weekend.
Whales play a significant role in the crypto market due to their ability to buy or sell substantial portions of an asset. They went on a massive buying spree ahead and during XRP’s rally but seem to have changed their tune, which could spell even more trouble for the asset.
Whales have offloaded over 130 million $XRP in the past 24 hours! pic.twitter.com/s43x7Rviba
— Ali (@ali_charts) February 2, 2025
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