XRP, the fourth-largest cryptocurrency by market capitalization, has suddenly withdrawn from its recent rally, showing massive price declines over the last day.
Amid the negative price trend, a massive XRP transaction has raised eyebrows across the crypto community, as data from blockchain monitoring firm Whale Alert shows millions of XRP being mysteriously shifted at once.
According to the data, over 53.7 million XRP worth about $108,046,173 was transferred between two unknown wallets on the XRP Ledger on Wednesday, December 11.
With the XRP community closely watching onchain movements amid rising curiosities about the asset’s next price action, the transfer has immediately sparked speculation about the intent behind the mysterious whale activity and potential market implications.
Is XRP rally over?
While the addresses involved in the large XRP transfers were not identified with any exchange, crypto custody providers, nor a major institution, traders have expressed concerns about the mysterious nature of the transfer.
As the sender and destination of the transaction remain unknown, it is hard to tell if the move was a mere institutional redistribution or an attempt to sell or buy the asset in the specified quantity.
While the exact motive behind the transfer remains undisclosed, analysts have suggested that it has contributed to the drawdown in the XRP price movement and, obviously, the 18.59% surge in its trading volume over the last 24 hours.
Amid the plummeting market condition, XRP has lost its crucial $2 support level, revisiting $1.99 following about a 4% price decline over the last day.
Despite this negative trend, investors have expressed confidence that the ongoing correction will be short-lived and the asset will return to the upside zone, as the predicted $2.50 target remains intact.