HomeLatest NewsRipple flat above 0.23USD as former CEO moves 499.9M XRP tokens

Ripple flat above 0.23USD as former CEO moves 499.9M XRP tokens

XRP/USD remains vulnerable despite holding a major support area around $0.23.

XRP/USD hit an all-time high price of $3.84 in January 2018 but has been in a long term downtrend that has seen it lose over 92% of its value since. And traders were braced for another dump after Whale Alert flagged a mammoth 499,999,997 XRP transfer on September 22.

Speculation remains as to whether the transfer to an off-chain wallet was a trade, but the identity of the bag holder is not a secret at all. The transfer was by Chris Larsen, a former CEO of Ripple Labs.

Larsen, who tops the crypto rich list largely from estimates of his net worth from 5 billion XRP tokens, confirmed that he moved the $115 million worth of crypto to regulated crypto service provider New York Digital Investments Group (NYDIG).

XRP/USD downtrend

Ripple formed a new top around $0.2580 in the week that Bitcoin retested the $12K peg before heavy selling pushed prices to within previously unfilled CME gap at around $9,700. Similar to the top asset, XRP/USD slipped to see bears take control and threaten to sink it below $0.23.

As of writing, XRP/USD has broken below $0.24 and a period of consolidation above $0.238 so far provides a buffer against an onslaught of selling pressure.

XRP/USD daily chart. Source: TradingView

Importantly, bulls must wither the sell-off pressure and correct above the 50% Fibonacci retracement level at $0.239. Above $0.24, the next target will be the 20 MA at $0.246 and then the 61.8% Fib level at $0.254 on the downswing from highs of $0.2547 to $0.231 low. Taking out sellers at this level brings into focus the psychological $0.2600, the 50 MA at $0.269, and a potential retest of $0.30 on higher time frames.

However, if short term action sees XRP/USD sunk below $0.23, a sustained period of bearish pressure could see the cryptocurrency bleed to lows of $0.20. Flopping to these levels would mean the XRP/USD pair extends its vulnerability and likely suffer 100% losses on the gains made since mid-July when bulls swung from $0.19 to $0.32 highs.

XRP/USD 1-hour price chart. Source: TradingView

For Ripple, the absence of any major move above $0.238 in the past 24 hours likely suggests buyers are intent on consolidating before making a fresh bid for an uptrend. As such, XRP/USD is headed for extended sideways action.


Sign up to our exclusive newsletter today!

Tailored emails

No SPAM ever!

Alt coin news

Unsub anytime

After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.