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With nearly 16% of its value lost in October 2024 alone, XRP, Ripple’s native coin, has been hit hard this month. A new complaint by the US Securities and Exchange Commission’s (SEC) in its ongoing action against Ripple is causing the price to drop. Investors are left wondering about the future of XRP as the legal question is whether it is worth it as a security over a token like the dark cloud.
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Optimism is mixed with skepticism, as some analysts are almost optimistic about a recovery, considering this dire forecast. Indeed, there have been whale activities identified with recent data from the Whale Alert platform, which monitors the transfer of large cryptos.
🚨 30,380,000 #XRP (15,993,939 USD) was transferred to an unknown fund to #Bitso
— Whale Alert (@whale_alert) October 3, 2024
In the last 24 hours, 153 million XRP tokens have been transferred and some of them, no doubt, on exchanges. This has generated some interest on the part of traders regarding the future prospects of XRP, although the future of the token depends largely on the outcome of the court and the SEC.
🚨 19,220,000 #XRP (10,122,908 USD) was transferred from an unknown fund to #Bitstamp
— Whale Alert (@whale_alert) October 3, 2024
Whales Migrate XRP
Whale Alert reports that the whale fund transferred more than 30 million XRP tokens equivalent to about $16 million to the Bitso exchange. Such activity on the part of the whales is often considered a precursor to when traders face further losses or seek profits. Everyone is speculating as to whether this wave of activity from whales means another leg down for XRP ahead of the SEC appeal.
🚨 🚨 🚨 104,384,848 #XRP (54,662,653 USD) was transferred from an unknown fund to a new unknown fund
— Whale Alert (@whale_alert) October 3, 2024
Despite this massive token transfer, there are those who expect that XRP may face a rebound. Jack The Rippler, a well-known crypto analyst, identified a historical descending triangle pattern on the one-month chart of XRP. This pattern means that the token is likely to consolidate before a possible breakout. In 2016 and 2020, comparable patterns resulted in rapid rallies following the breach of resistance levels, giving hope to those expecting further increases in the price of XRP.
XRP down in the last week. Source: Coingecko
XRP down in the last week. Source: CoingeckoRelated Reading
Is There Any Chance Of Separation?
XRP is currently in a critical state from a technical point of view. The Relative Strength Index (RSI) is currently at 39, a value that suggests bearish momentum. Generally, an RSI below 50 indicates that the asset is under pressure, and if it falls below 30, it may enter an oversold zone.
However, analysis from Jack The Rippler reveals that XRP may break out of its current trend as this is the case after a similar consolidation in the past. Analysts expect that this token may continue to pursue the next level of resistance if that is the case.
Meanwhile, the SEC case is the elephant in the room, however, and cannot be ignored. The outcome of this court dispute will greatly affect XRP’s next move. If the SEC should be successful in proving that Ripple’s second XRP sale violated US securities laws, the token could suffer significant losses; some analysts predict a big drop from its current price to $0.11.
Featured image from CPO Magazine, chart from TradingView