The crypto market is struggling to recover some degree of stability, after spending a week under severely bearish conditions.
XRP in particular, was one of the worst-hit cryptocurrencies when Bitcoin slid from above $29,000 to under $26,000 last week, in less than a day.
Data from TradingView shows that Ripple slipped by nearly 35% from Tuesday the 15th, to Thursday the 17th of August.
However, CoinMarketCap shows that this cryptocurrency is now recovering.
Over the last seven days, Ripple has made a 3% comeback, correcting its trajectory from a $0.4226 low to where it now sits at $0.517.
However, will this recovery be enough to save XRP?
The whales don't think so, and here's something you should know.
One thing that is worth mentioning is what it means when whales move funds into or out of exchanges.
The primary function of exchanges (as their name implies) is to allow people to exchange, or sell their crypto.
It gets pretty straightforward from here.
According to a recent post from Whale Alert on Twitter (formerly X), a whale just transferred a whopping $15 million worth of Ripple into Bitstamp.
Ripple is already in a delicate spot, as it is.
More than likely, this whale moved such a large amount of XRP into Bitstamp to sell them.
The effects of such a large amount of Ripple ($15,130,884's worth) re-entering the market could pose drastic consequences for the price of the cryptocurrency.
The price of Ripple is currently struggling around the $0.5 support level. And if whales make selling large amounts of their holdings a trend, we may see Ripple entering an even sharper price decline.
Meanwhile, the trial between Ripple and the SEC is expected to start around the middle or end of May, according to this tweet from FOX business journalist, Eleanor Terrett.
This is a result of Ripple CEO Brad Garlinghouse and executive chairman Chris Larsen, stating that they would not be available until the second quarter of 2024.
According to the charts, Ripple's 17 August decline brought it straight down to the $0.42 zone.
However, The cryptocurrency soon recovered and broke above the $0.515 resistance as illustrated below.
This $0.515 resistance has now become a support.
It is also reinforced (somewhat) by the cryptocurrency's 200-day MA (red line) and is holding out fine.
However, there's a catch:
The only thing keeping Ripple from retesting this $0.42 low and (possibly) going further downwards, is the $0.515 support, and its 200-day MA.
As it is, it becomes game over for the bulls if XRP breaks and closes below $0.515, because a retest and possible breakdown of $0.42 will become inevitable.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.