Ripple whales shed 200 million XRP in July, altcoin crushes under selling pressure
- Ripple whales sell over 200 million XRP tokens in July, while retail investors and whales in other cohorts accumulate.
- XRP rallied 23% in the past seven days, the altcoin erased recent gains as traders engaged in profit-taking.
- XRP trades around $0.5600 at the time of writing.
Ripple (XRP) trades around $0.5600, erasing recent gains on Friday. XRP token holders have consistently realized gains on their holdings in the past week, increasing the selling pressure on the altcoin and prompting a correction.
On-chain data and whale activity shows a change in the supply distribution, larger cohort of whales are distributing their XRP, while smaller cohorts accumulate.
Daily Digest Market Movers: Ripple whales sell over 200 million XRP
- Santiment data shows Ripple’s large wallet investors holding upwards of 100 million XRP in their wallets have sold over 200 million tokens in July 2024.
- In the same timeframe, Ripple wallet addresses in other cohorts, holding between 100,000 and 100 million XRP have accumulated XRP, as seen in the chart below.
- Typically, accumulation is a bullish sign for XRP. While the largest whale cohort is shedding their holdings, smaller cohorts are accumulating, likely anticipating a recovery in the future.
 [19.27.39, 19 Jul, 2024]-638569963538217080.png)
XRP address cohorts and supply distribution vs. price
- The US Securities and Exchange Commission (SEC) vs. Ripple lawsuit has no new update from either side. XRP traders are watching the lawsuit closely for a final ruling. Attorney Fred Rispoli predicted the end of the SEC vs. Ripple lawsuit in July 2024.
- As of Friday, July 19, profit-taking by investors grinds to a halt. The Network Realized Profit/Loss metric, used to determine the net profit/loss of traders, shows XRP traders realized nearly $500,000 in losses on the day.
 [19.32.02, 19 Jul, 2024]-638569963839500434.png)
Network Realized Profit/Loss vs. price
Technical analysis: XRP could extend losses by 15%
Ripple suffered a decline, XRP corrected to $0.54 low, early on Friday. The altcoin erased recent gains and is likely to extend losses by nearly 15% and sweep liquidity in the Fair Value Gap (FVG) between $0.5136 and $0.4780.
Once Ripple sweeps liquidity in this FVG, a return to $0.6058 is likely. This represents the 61.8% Fibonacci retracement of the decline from the March 12 top of $0.7696 and the July 5 low of $0.3823.
XRP/USDT daily chart
Ripple could find support at $0.5205, the 38.2% Fibonacci retracement of the decline from March 12 to July 5.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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