According to Santiment, XRP price is still “suppressed” at its current price and, hence, has room to expand. The recent volatility in the crypto market has caused short-term price extremes, pushing XRP to the brink of as low as $0.57. At the time of writing, the Ripple’s native token is changing hands at $0.8289.
XRP/USD 4-hour chart | Source: TradingView
XRP price is “suppressed” and has room to grow
A flurry of XRP transactions appeared on the blockchain before the crypto market recovered. The total value of the funds transferred equates to approximately $76 million. Three transactions occurred on the blockchain 15 hours ago, right before the recovery on the crypto market began.
The first 40 million XRP, as shown below, was made from the official Ripple account to an unknown wallet that currently holds 30 million tokens. The traded coins have not been in the wallet for a long time and are almost immediately transferred to another anonymous wallet, sending the funds to a centralized exchange.
![xrp-price-remains-suppressed-at-its-present-price-has-the-potential-to-grow[1]](https://d3f5j9upkzs19s.cloudfront.net/azcoinnews/wp-content/uploads/2021/12/xrp-price-remains-suppressed-at-its-present-price-has-the-potential-to-grow1-1024x771.png)
Source: Whale Alert
Community members have alleged that Ripple used two unknown wallets to sell their holdings on the exchange without making the transaction directly to the exchange’s address.
While the official account transaction was done with the help of two unknown wallets, the subsequent transaction was less suspicious and more direct. The anonymous whale transferred 20 million coins to the Bitso exchange 15 hours ago and received almost the same amount back only an hour later.
![xrp-price-remains-suppressed-at-its-present-price-has-the-potential-to-grow[2]](https://d3f5j9upkzs19s.cloudfront.net/azcoinnews/wp-content/uploads/2021/12/xrp-price-remains-suppressed-at-its-present-price-has-the-potential-to-grow2.png)
According to the fund’s movement, this person, for whatever reason, transferred 20 million to the centralized exchange, left 1.8 million XRP in the exchange’s hot wallet, and transferred 18.2 million XRP back to his wallet. The reason behind such unusual fund movement remains undisclosed.
Source: Santiment
Santiment’s ”strong and oversold” indicates that XRP shows signs of having an undervalued price compared to its fundamentals. When XRP drops suddenly and falls below its true value, it is oversold. This usually happens due to an overreaction in the market or panic selling. In this case, assets that have suffered a significant decline in a short time are generally considered oversold.
Investors are waiting for a positive outcome in XRP price following the SEC lawsuit, which Ripple CEO Brad Garlinghouse is likely to end next year.
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Read more:
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