Ripple’s XRP faced a tumultuous period as the cumulative volume delta (CVD) indicated a substantial net sell-off of nearly 100 million XRP tokens, primarily observed on major exchanges like Binance and OKX. As per the data from Kaiko, this significant sell-off followed the alarming news of a hack targeting Ripple’s co-founder, which resulted in over 200 million XRP being compromised. The stolen tokens were swiftly dispersed across various exchanges throughout several hours, starting from 11 am UTC until 10 pm.
The CVD metric underscored the magnitude of selling pressure during this period, shedding light on the impact of the breach on investor sentiment. Despite the rapid dissemination of the stolen tokens, the attacker’s attempts to liquidate all holdings were thwarted as exchange accounts were promptly frozen, limiting further damage.
Whale Investors Reduce Ripple’s XRP Holdings
The repercussions of the hack reverberated through XRP’s market dynamics, triggering heightened volatility in its price. Within hours of the breach coming to light on January 31st, XRP witnessed a sharp decline, plummeting to $0.48, marking its lowest valuation since October 19, 2023. On-chain data analysis indicates a prevailing lack of investor confidence within the XRP ecosystem.
Santiment’s Supply by Addresses metric, a barometer of high-net-worth and whale investor engagement, exhibited a discernible decline in whale activity. The number of wallets holding at least $100,000 worth of XRP dropped from 1,986 to 1,958 between January 28th and February 3rd, indicating a reduction in whale involvement. This trend hinted at a possible apprehension among major investors following the security breach, amplifying concerns regarding market stability and momentum.
Whale investors wield significant influence due to their large holdings, and their reduced participation may signal a loss of market momentum and liquidity. A decrease in liquidity could render the market more vulnerable to rapid price swings, impacting overall stability. The ongoing investigation into the Ripple Labs co-founder’s hacked wallet is expected to heavily influence XRP’s price trajectory in the foreseeable future.
As of the latest data from CoinMarketcap, the token is trading at $0.501833, with a 24-hour trading volume of $801 million, marking a notable surge of 40%. Despite this uptick, the price remains down by 0.52% over the past 24 hours, reflecting the lingering impact of the security breach. With a current CoinMarketCap ranking of 6 and a market capitalization of $27 billion, XRP navigates a precarious landscape fraught with uncertainty and apprehension.
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