The price of Ripple (XRP) decreases 18% following the announcement of the Fed’s interest rate: What took place?
![xrp](http://vipkhoone.com/wp-content/uploads/2023/06/xrp-1.jpg)
Briefly
- after reaching a 2023 peak of $0.56 on Tuesday, the price of Ripple (XRP) fell 18% as a result of the US Federal Reserve’s recent announcement hinting at future hikes.
- Before XRP holders can be sure of another price rise, the rising NVT ratio suggests that the XRP ledger network needs more economic activity.
- When the price reached $0.53, a powerful group of XRP whales started selling. They sold more than 300 million coins this week.
On Tuesday, the price of Ripple (XRP) reached a new 2023 high of $0.56, causing a great deal of excitement in the market. However, the XRP price rise was effectively halted by the circumstances surrounding the most recent Fed Rate announcement. How much longer will the XRP price trend be bearish?
The Ripple (XRP) team has almost made the XRP Ledger the preferred blockchain solution platform for institutions and governments. This has made the XRP price extremely susceptible to the whims and influences of whale investors, unintentionally.
The United States Federal Reserve (Fed) announced a rate pause on June 14 with the caveat of potential future hikes. Compared to other Layer-1 altcoins, XRP’s price fell 18% by Thursday’s close, making it particularly vulnerable.
Can the bearish outlook be quickly overturned if new demand is attracted to the XRP ledger network?
XRP Whales Are Dumping Their Coins
The most recent announcement from the Fed is one reason why institutional investors are selling their XRP holdings. On-chain information shows the XRP whale partner holding 100 million to 1 billion coins started selling on June 11. However, the announcement on June 14 has exacerbated the bearish frenzy even further.
The chart below shows that between June 11 and June 16, the whales have withdrawn 300,000 million coins.
The whales have sold coins worth approximately $138 million at the current $0.46 market price. By selling such a large number of coins in such a short amount of time (less than a week), the whales were a major contributor to the current price decline.
This could frighten away potential investors and cause existing investors to become bearish unless the trend reverses. These might prolong the bearish price trend for XRP.
Get to know Godleak
Godleak crypto signal is a service which provide profitable crypto and forex signals. Godleak tried to provide you signals of best crypto channels in the world.
It means that you don’t need to buy individual crypto signal vip channels that have expensive prices. We bought all for you and provide you the signals with bot on telegram without even a second of delay.
Godleak crypto leak service have multiple advantages in comparision with other services:
- Providing signal of +160 best crypto vip channels in the world
- Using high tech bot to forward signals
- Without even a second of delay
- Joining in +160 separated channels on telegram
- 1 month, 3 months , 6 months and yearly plans
- Also we have trial to test our services before you pay for anything
For joining Godleak and get more information about us only need to follow godleak bot on telegram and can have access to our free vip channels. click on link bellow and press start button to see all features
Join for Free
☟☟☟☟☟
https://t.me/Godleakbot
Also you can check the list of available vip signal channels in the bot. by pressing Channels button.
XRP Network Value is Declining
On-chain data suggests that the value of the XRP network has decreased over the past week. This suggests that market speculation rather than the network’s underlying economic activity was the driving force behind the most recent price rise.
The growth of a cryptocurrency’s market value in relation to the underlying transactional activity is evaluated by Santiment’s Network Value to Transaction Volume (NVT) ratio.
The NVT ratio has risen 35% from 64.49 to 87.39 between June 12 and June 16.
Simply put, the rising NVT ratio above indicates that asset prices are rising at a faster rate than actual economic activity. This typically takes place during times when market speculation is at its highest.
Investors’ strong reaction to the SEC’s recent crackdown on major exchanges and designation of rival Layer-1 altcoins as securities prompted the current rally in XRP.
If XRP is unable to attract increased demand in the form of tangible user acquisition and expansion of transactional activity, the NVT ratio will likely continue to rise.
In conclusion, strategic investors will keep an eye on the bearish whales and the rise in transaction activity to anticipate how the price of XRP will move in the coming days.
XRP Price Prediction: A Bearish Downsing Toward $0.40
If transactional activity falters and bearish whale investors continue to sell, the XRP price will likely fall under $0.40 again.
On the other hand, if the price of XRP rises above $0.50, the optimistic outlook could be reversed by the bulls. However, in order to cover their losses at the break-even point, many investors will likely sell at $0.49.
Otherwise, XRP may reclaim its $0.55 peak from 2023.