Recently, a significant amount of XRP tokens have been sold off by major holders, causing concern in the market ahead of the SEC's decision.
Whale Sell-Off Volume
In the past month, major XRP holders have offloaded approximately $1.91 billion worth of tokens while the price traded between $2.28 and $3.54. Since July 9, around 640 million tokens have been moved or sold; however, not all of these transfers are confirmed sales, and some may just be internal reshufflings within wallets. Analysts note that this outflow may indicate a decline in confidence among large investors.
Risk of Sharp Correction
Market analysts are raising concerns that XRP could face a stark correction. It is forecasted that if XRP drops below the crucial support level of $2.65, it could plunge another 30%, potentially hitting $2.06. This level has previously been significant, and a fall below it could trigger further fear-driven selling. Currently, XRP is barely managing to stay above the $2.65–$2.70 range.
SEC Decision and Implications
The SEC is poised to decide whether to abandon its long-standing litigation against Ripple. Should the SEC drop the case, it could bring long-overdue clarity to XRP's status in the U.S. The central question is whether XRP should be regulated as a security. This uncertainty has long been a barrier to XRP's progress. If XRP drops below the $2.65 support level, it could fall to $2 or even lower, possibly touching the 50-week EMA at $2.06.
Uncertainty surrounding the SEC's decision and the actions of major holders are causing significant concerns about XRP's future. Investors are anxiously awaiting updates from both regulators and the market.
