Why Did Ripple’s (XRP) Price Tumble by 8% Daily?

TL:DR;

• The entire crypto market turned red on Sunday morning, but some altcoins were hit harder than others.
• XRP’s price decline came just hours after a warning by a popular analyst that whales have started to sell off their holdings.

The third-largest cryptocurrency failed to go into uncharted territory a few weeks back, and it was stopped 1% away from its 2018 all-time high of $3.4 (CoinGecko data). Since then, the asset has failed to resume its rally and actually slipped to $2.8 during the Monday correction.

Nevertheless, it turned the tables during the business week by reclaiming the coveted $3 line. Moreover, it jumped to a weekly high of $3.15 on Friday, but its progress was halted at that point.

It started to lose value gradually over the weekend but slumped hard in the past 12 hours or so alongside bitcoin and the rest of the alts . Its price fell to a 6-day low of $2.82, thus dropping by more than 8% on a daily scale from top to bottom.

Despite recovering some ground to almost $2.9 now, XRP is still over 5% down on the day. This correction for the cross-border token comes not only with the rest of the market but also following a strategy reversal by whales.

These large market participants were among the biggest propellers of XRP’s surge since the elections by accumulating billions of dollars worth of the asset within months. Now, though, Ali Martinez showed that they have changed their tune and actually offloaded $70 million worth of XRP within a few days.

Whales are particularly important to the overall market movements as they have the ability to move it with their large purchases or sell-offs.