[Analysis] "Reason for XRP's sharp drop: increase in whale investors' exchange deposit volume"
Summary
- "The recent sharp decline of XRP (XRP) was said to be due to a Sell the News pattern resulting from increased exchange deposit volumes by large whale investors."
- "They said the whales' selling formed strong selling pressure, and together with Bitcoin's weakness triggered an XRP sharp decline."
- "In the short term, limited rebounds are expected until the whale selling is resolved, but they said this adjustment does not undermine XRP's long-term fundamentals."
The recent sharp decline of XRP (XRP) is analyzed not as a simple correction but as a typical 'Sell the News' pattern triggered by a planned selling flow from large whale investors.
On the 6th (local time), CryptoOnchain, an author at CryptoQuant, said, "The 'Whale to Exchange Flow (Total) – Binance' indicator based on the XRP Ledger has shown a steady upward trend since the end of last year. This means the volume of assets whales are moving to exchanges has been steadily increasing, which is typically interpreted as a signal of an impending bearish shift."
He added, "This funding announcement from Ripple provided whales with 'exit liquidity,'" and analyzed, "At the moment retail investors' expectations peaked, whale selling formed strong selling pressure. Combined with a broad market weakness centered on Bitcoin, XRP experienced a rapid decline." Earlier, Ripple had announced a $500 million investment round.
However, the author emphasized, "In the short term, XRP is likely to maintain limited rebounds until whale selling is fully resolved, but this correction does not damage XRP's long-term fundamentals."
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
