It is now doubtful that the Ripple Labs cryptocurrency, XRP, would be able to hit the much-anticipated $1 price objective this month as its pricing has taken a negative swing today.
The market’s general unease over the impending Bitcoin halving and a significant transfer of XRP tokens by a whale also correspond with this fall.
Whale Offloads Millions Of Tokens
Data from from blockchain tracker Whale Alert shows that an unknown wallet transferred nearly 25 million XRP tokens worth $14.75 million, to the cryptocurrency exchange Bitstamp. This transaction sparked speculation within the crypto community, with many attributing the subsequent price dip to the whale’s sell-off.
The timing of this transfer is particularly noteworthy as it follows a pattern observed in the past. When Ripple Labs strategically acquired stakes in cryptocurrency exchanges, similar whale movements to these exchanges were witnessed.
This led some to believe that Ripple might be attempting to manage the altcoin’s market supply, potentially causing price fluctuations through controlled exchange inflows.
🚨 24,880,000 #XRP (14,752,878 USD) transferred from unknown wallet to #Bitstamphttps://t.co/wdX27lI223
— Whale Alert (@whale_alert) April 7, 2024
Bearish Sentiment Grips XRP Market
Further contributing to the price decline were signs of dwindling investor interest in XRP. On-chain data revealed a decrease in activity related to its derivatives, suggesting a potential drop in investor confidence.
XRP market cap now at $32 billion. Chart: TradingView.
Additionally, data from Coinglass showed a decrease in open interest for XRP futures contracts, alongside liquidations exceeding over $280,000 within a single day. These indicators collectively paint a picture of a bearish market sentiment surrounding the digital asset.
Source: Coinglass
Bitcoin Halving Throws Uncertainty Into The Mix
The upcoming Bitcoin halving, an event that significantly reduces the number of new Bitcoins entering circulation, has injected uncertainty into the broader cryptocurrency market.
While historically such events have led to price increases for Bitcoin, the short-term impact on altcoins like XRP remains unclear. Some analysts believe the crypto could benefit from a post-halving Bitcoin surge, while others anticipate a more complex interplay between the two currencies.
Can XRP Still Reach $1 In April?
The recent price drop undoubtedly makes the $1 target for XRP in April seem less attainable. However, dismissing the possibility entirely might be premature. The cryptocurrency market is known for its volatility, and unforeseen events could trigger a rapid price increase for the coin.
Moreover, some analysts retain their optimistic outlook, believing that the bullish sentiment surrounding the token, coupled with the potential tailwinds from the Bitcoin halving, could still propel XRP towards the coveted $1 mark.
Featured image from Pexels, chart from TradingView