With the increasing adoption of cryptocurrencies, increasing investments by institutional money are gathered in this altcoin project. While this altcoin project, in which institutional investors have invested heavily in recent days, has come to the fore, data indicates that whales are selling altcoins! So why? Here are the details…
Institutional investors are turning to this altcoin project
According to the latest data provided by CoinShares, the flow of money to crypto investment products, especially XRP-related investment products, increased by more than 33 percent compared to last week. They’ve accrued $400,000 over the past seven days, bringing total year-to-date net flow to $1 million.
At the same time, funds were flowing on Short Bitcoin, Polygon (MATIC) and Solana (SOL), while outflows reaching a total of 177 million were seen in this segment of financial markets since the beginning of the year. On the other hand, the flow of institutional money to these coins attracted the attention of many investors and reached more investors.
Cryptocurrency whales sell their XRP: They dumped 30 billion XRP!
While the cryptocurrency market started to rise in March, XRP continued to trade at $0.38 levels. Whales are seen in a sales operation. Experts state that poor price performance is close with this sales operation. As XRP prices have been stuck between $0.35 and $0.38 for the past 30 days, holders have missed out on the benefits of the recent crypto rally. On-chain indicators of the third-largest cryptocurrency by market cap now point to a bleak future.
According to Santiment, XRP whales have started a selling spree despite the recent bull surge that surpassed the market capitalization of cryptocurrencies by $1.1 trillion. Crypto whales with 10 to 100 million XRP balances have sold around 30 billion XRP worth around $11 million. This group of whales dropped their XRP holdings from 4.42 billion to 4.1 billion between March 9 and March 20.
A closer study reveals that cryptocurrency holders of 10 to 100 million XRP have become more savvy in recent months. They were frequently sold out during the November 2022 FTX crash before prices plummeted and re-accumulated near regional lows. The current selloff presents a bleak outlook for XRP price in the coming weeks if this trend continues.
Developer activity for XRP dwindles
The declining developer activity on the Ripple-powered network underscores a pessimistic forecast for XRP. Since March 20, developer activity has dropped more than 60 percent since mid-February. Developer activity measures how much time and money is spent developing the XRP Ledger. Consistent dips are bad because investors may interpret them as a lack of technical and community support, further damaging XRP’s long-term price prospects. A close examination of previous bear market patterns reveals that XRP investors will stop selling after a 10 percent loss.
Ripple Developer Event, March 2023This means that XRP could drop to $0.33 in the coming weeks. And if this stop does not hold, the sell-off could continue until the XRP price drops 25 percent to $0.29. If XRP can overcome the current bearish signals, its price could soar until most traders are able to take profits around the $0.42 or 13 percent profit line. This could cause the perception of the market to change, increasing buying pressure and extending the rally towards $0.49.
XRP 4-hour price chartAs we reported as Kriptokoin.com, altcoin XRP, which has lost 4% of its value during the day, is instantly traded at $ 0,378761.
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