Ripple Labs, the company behind XRP, has faced a challenging week as XRP’s price experienced a notable drop coinciding with significant XRP sales.
Key Takeaways
- Ripple Labs, typically associated with positive developments in the crypto world, has experienced a challenging week as XRP’s price witnessed a significant drop.
- Despite ongoing legal challenges with the U.S. Securities and Exchange Commission (SEC).
- Whale Alert, a service that tracks large cryptocurrency transactions, detected two major XRP transfers from an anonymous wallet to the exchanges Bitstamp and Bitso, involving over 52 million XRP.
- Following these large transfers, the price of XRP experienced a sharp decline, dropping from $0.0651 to $0.616—a decrease of over 5%.
Ripple Labs, known for positive contributions to the crypto world, faced a challenging week as XRP’s price experienced a significant decline despite recent legal battles with the SEC.
XRP’s Previous Positive Momentum
XRP, the digital asset associated with Ripple, had been on an upward trajectory for the past three months, defying legal challenges.
Whale Alert, a service tracking large crypto transactions, identified two substantial XRP transfers from an anonymous wallet to Bitstamp and Bitso exchanges. These transfers involved over 52 million XRP and are suspected to be linked to Ripple Labs.
The large transfers triggered a sharp decline in XRP’s price, with it falling from $0.0651 to $0.616—a drop of over 5%. This decline followed a previous 12% decrease attributed to false rumors about a BlackRock XRP ETF.
#Ripple Labs faces challenges as $XRP's price drops after large transfers, potentially linked to the company. Community watches closely #cryptonews 🔥👇https://t.co/0XIUFoPZYm
— Coinpedia (@CoinpediaNews) November 18, 2023
Explaining On-Demand Liquidity (ODL)
Ripple Payments, previously known as On-Demand Liquidity (ODL), is a crucial component of Ripple’s ecosystem. It offers a more efficient and direct transaction process compared to traditional banking systems.
The cryptocurrency community is closely monitoring Ripple Labs and XRP in response to these significant transfers, with investors and analysts keenly interested in their future movements.
To Conclude
Analysis suggests that these transfers might be linked to Ripple Labs rather than representing a straightforward sale. Following these transfers, XRP’s price fell over 5%, declining from $0.0651 to $0.616.
This price drop followed a previous 12% decrease caused by false rumors about a BlackRock XRP ETF.
