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Solana and XRP prices to tank, but why? – What’s next?

Solana

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TL;DR

  • After a month-long price spike, Solana became the sixth-largest crypto by market cap. The recent SOL price decline coincides with a huge FTX cold wallet transfer.
  • Recent market dynamics show that the SOL price failed to break beyond the $65.3 threshold.
  • Whale Alert detected a 24 million XRP token transfer by a whale. The massive token transfer totaled $14.88 million. This has raised questions among XRP investors about whether the whales were influencing the spike or dump.

While the overall crypto market is experiencing slight consolidation, Ethereum Layer-1 competitor Solana (SOL) has had a significant price drop today. In addition, a whale just transferred 24 million XRP tokens, according to the crypto transfer alert platform Whale Alert. This has marked XRP for market doom as the rest of the market recovers.

Solana’s price tanks after weeks of wins

While the crypto industry as a whole is experiencing modest consolidation, Ethereum Layer-1 competitor Solana (SOL) has had a significant price drop today. Solana (SOL) is currently trading at $59.94 with a 24-hour trading volume of $2,026,139,744.51. This indicates a -5.30% decrease in the last 24 hours and a 7.77% gain in the last seven days.

Solana has seen a tremendous price surge in the last month, propelling it to the sixth-largest crypto coin by market cap. The current reduction in the price of SOL also coincides with a huge transfer through an FTX cold wallet.

Prior to its bankruptcy filing, crypto exchange FTX had a large amount of Solana. The exchange is now liquidating its stocks in order to repay its creditors. However, this hasn’t stopped Solana investors from starting on a bullish price surge.

An address closely related to the FTX cold wallet, known as 4Axqyo…HswTAh, unstaked a huge quantity of 1.5 million SOL (equal to about $90 million) today at 7:55 UTC+8.

The entire unstaked sum was then sent to the address 3vxheE5…5mgkom. According to Lookonchain, the receiving address, 3vxheE5…5mgkom, may be linked to Coinbase’s internal address.

Speculators in the market expect a possible appreciation to the $79.1 level should a favorable breakthrough materialize. In contrast, a decrease in price below $59 may indicate an impending decline, with the $56.4 level of support serving as a possible obstacle. 

There’s a bit of hope that, in the domain of decentralized finance (DeFi), Solana is generating significant attention due to its remarkable throughput and scalability. Solana’s increasing confidence and influence in the DeFi sector are evidenced by the recent surge in Total Value Locked (TVL) to a noteworthy $655 million.

XRP whale activities put the coin in trouble

According to the crypto transfer tracking portal Whale Alert, a whale recently transferred 24 million XRP tokens. The astonishing number of tokens exchanged was valued at $14.88 million. The transaction was logged between an unnamed wallet and the well-known crypto exchange Bitstamp.

This sparked debate among XRP holders regarding whether the whales were attempting to manipulate the XRP surge or dump. The latest run that propelled XRP above $0.60 was spurred by the crypto bull market and a lot of excitement.

Today’s XRP (XRP) price is $0.611150, with a 24-hour trading volume of $1,583,248,945.69. This indicates a 4.45% decrease in the last 24 hours and a 1.31% gain in the last seven days. 

The rise, however, wasn’t sustained for long due to a number of factors. One of the primary factors is a lack of institutional interest. Most of investors have shifted their focus to Bitcoin and Ethereum. As a result, the increased outflow and liquidation resulted in a price drop.

The good news is that the number of holders continues to grow. According to Santiment, the total number of XRP holders is greater than 4.88 million, indicating that investors are interested in XRP.

Ripple VS. SEC

As the bull rally kickstarts, there are no SEC v. Ripple case developments to influence XRP patterns. Because of the lack of court activity, XRP is now in the hands of the broader crypto market. XRP, on the other hand, lagged behind the crypto market. Uncertainty regarding the SEC’s plans to appeal the Programmatic Sales verdict persisted.

Despite recent negative headlines about the SEC, the Hinman documents, and the collapse of FTX, the SEC remains firmly in charge of regulatory matters.

A US regulatory framework could limit the SEC’s role in the digital asset market. Clarity on whether cryptos are securities or commodities would also put a stop to the reign of enforcement regulation.

On the other hand, the SEC v. Ripple court briefing timetable and the timing of an appeal could leave XRP at the mercy of the SEC.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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