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The Ripple Labs cryptocurrency, XRP, has seen dramatic price swings in the wake of several massive token transfers and the spread of erroneous information about a possible exchange-traded fund (ETF).
Major cryptocurrency transactions are tracked by Whale Alert, a service that raises awareness of these moves that have fueled speculation and price volatility.
Around 447 million XRP tokens were transferred, according to a significant transfer recorded by Whale Alert on Sunday.
Two different wallets were involved in the movement: one connected to Ripple and another that was previously active but was unknown.
Approximately 424 million tokens, valued at nearly $281 million, were transferred from the unidentified wallet in the first wave. A portion of the tokens were sent to Bitvavo, suggesting a potential sell-off.
The second set of transactions happened on Monday when roughly 23 million tokens—worth about $15 million—were transferred from a Ripple-connected wallet to a Bitstamp address.
The transfers that Ripple’s On-Demand Liquidity (ODL) partners make are typically of this type.
In the midst of these transfers, false allegations that BlackRock (NYSE:BLK) had applied for an XRP spot ETF caused XRP’s price to spike by 16%. The price reached $0.75 before reverting after Bloomberg’s ETF expert Eric Balchunas dismissed the news as bogus.
According to CoinMarketCap data, XRP’s trading value has decreased by 1.84% today.
The cryptocurrency is now trading at $0.6562, and its total market capitalization has decreased to $35 billion.
This decline in value follows an atypical 15% price spike that occurred after a big transaction involving the transfer of 24 million XRP tokens ($15.61 million) to Bitstamp by an unidentified wallet.
Some investors began to prepare for a possible sell-off as a result of the ensuing increase in token circulation.
False rumors regarding an XRP spot ETF that was allegedly funded by BlackRock and registered on Delaware’s investment trust registration website also contributed to the current price increase.
Subsequently, BlackRock verified that the trust registration was false.
The ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has increased the level of uncertainty influencing the price of XRP.
Investors have been keenly monitoring Judge Torres’ announcement regarding the case’s remedy discovery and briefing schedule, as it could have an impact on XRP’s worth.
XRP had a slight increase in price of 1.85% to $0.6645 in the 24 hours before November 14, although it saw a decrease of 3.99% over the previous week.
A staggering 221.99% increase in trading volume occurred during this time, indicating increased market activity and investor interest in these developments.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Always conduct your research before making any financial decisions.
