XRP, the cryptocurrency developed by Ripple Labs, has been experiencing significant price fluctuations following a series of large token transfers and the circulation of false information regarding a potential exchange-traded fund (ETF). Whale Alert, a service tracking major cryptocurrency transactions, brought attention to these movements, which have contributed to market speculation and price volatility.
On Sunday, Whale Alert reported a substantial transfer of approximately 447 million XRP tokens. The movement involved two separate wallets: one associated with Ripple and another unidentified wallet that had previously been active. The first batch of around 424 million tokens, worth close to $281 million, was moved from the unknown wallet, with some tokens sent to Bitvavo, hinting at a possible sell-off.
The second batch of transactions occurred on Monday when roughly 23 million tokens, valued at about $15 million, were shifted within a wallet connected to Ripple to an address based at Bitstamp. This type of transfer is characteristic of those conducted by Ripple's On-Demand Liquidity (ODL) partners. Amid these transfers, XRP's price experienced a sharp 16% increase due to erroneous reports claiming BlackRock (NYSE:BLK) had filed for an XRP spot ETF. The price reached $0.75 before correcting after Bloomberg's ETF analyst Eric Balchunas dismissed the report as false.
Today, XRP's trading value has seen a downturn by 1.84%, with the cryptocurrency changing hands at $0.6562 and its overall market capitalization dropping to $35 billion according to CoinMarketCap data. This decrease in value comes after an unusual 15% surge in price following a significant transaction where an unknown wallet transferred 24 million XRP tokens ($15.61 million) to Bitstamp. The subsequent increase in token circulation led some investors to anticipate a potential sell-off.
The recent price surge was also influenced by the spread of false rumors about an XRP spot ETF purportedly backed by BlackRock and listed on Delaware's investment trusts registration website. BlackRock later confirmed that the trust filing was fraudulent.
The ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has added to the uncertainty affecting XRP's price. Judge Torres recently announced scheduling for remedies discovery and briefing in the case, which has been closely watched by investors for potential impacts on XRP's valuation.
In the past 24 hours leading up to November 14, XRP saw a marginal increase of 1.85% in its price to $0.6645 but registered a decline of 3.99% over the previous week. Trading volume during this period surged by an astounding 221.99%, reflecting heightened investor interest and market activity around these developments.
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