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Ripple recently transferred 470 million XRP, sparking market speculation over the transaction’s purpose. This significant transfer to an undisclosed wallet comes amid renewed bullish sentiment around XRP, especially following Donald Trump’s reelection today.
Potential Reason Behind Ripple’s XRP Movement
According to Whale Alert data, Ripple transferred 470 million XRP tokens worth $250.45 million to the wallet address, rP4X2…sKxv3. While the firm has not clarified the purpose of this large XRP transfer, on-chain data reveals that this unknown wallet later moved 100 million XRP, valued at $53.27 million, to another address (rhWt2…E32hk).
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 470,000,000 #XRP (250,454,910 USD) transferred from #Ripple to unknown wallethttps://t.co/cIMknG2fMH
— Whale Alert (@whale_alert) November 6, 2024
Industry observers suggest this could be tied to Ripple’s On-Demand Liquidity (ODL) service. On the other hand, it could be also related to the ongoing legal expenses related to the company’s battle with the U.S. Securities and Exchange Commission (SEC).
🚨 🚨 🚨 100,000,000 #XRP (53,270,381 USD) transferred from unknown wallet to unknown wallethttps://t.co/oO74WQfI1W
— Whale Alert (@whale_alert) November 6, 2024
Ripple’s $250 million transfer adds to a broader wave of recent XRP movements. Just a day earlier, XRP whales moved $814 million worth of XRP, signaling large-scale accumulation among high-volume holders.
Analysts have pointed out that if Ripple’s transfer indicates an over-the-counter (OTC) sale, it might avoid direct market impact. However, the movement could still contribute to bearish sentiment among XRP investors wary of potential price volatility.
Bullish Outlook After Trump’s Victory
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Despite the Ripple transfer and its potential impact, analysts remain optimistic about XRP’s long-term prospects, particularly after Trump’s recent win in the U.S. presidential election. Several prominent crypto analysts, including StephIsCrypto and Amonyx, predict that Trump’s victory could fuel a major XRP price rally, with estimates suggesting the token might soar by over 3,000%.
StephIsCrypto has forecasted that XRP could surpass $2, citing Trump’s election win as a catalyst. Amonyx, another well-known analyst, took this bullish view further, predicting that XRP could reach $20 by the end of the year. The analyst links this forecast to potential shifts in the SEC’s leadership, with SEC Chair Gary Gensler expected to leave his post following Trump’s victory.
Since Gensler has been central to the SEC’s enforcement actions against Ripple, his departure could remove a significant regulatory headwind for XRP. This could, in turn, lead to renewed investor confidence in the cryptocurrency.
Ripple’s top executives have also commented on the changing regulatory scene. CEO Brad Garlinghouse recently urged President-elect Trump to consider dismissing Gensler on his first day in office. He also argued that Gensler’s approach has created regulatory uncertainty for the U.S. crypto sector.
Thank you to both campaigns for a hard-fought race and for invigorating the democratic process. Congratulations to @realDonaldTrump! You took the time to listen to Ripple’s story when we met in SF this summer, and you prioritized crypto as a key policy issue. Now, let’s move… https://t.co/AzT5pcIZrt
— Stuart Alderoty (@s_alderoty) November 6, 2024
The firm’s Ripple’s Chief Legal Officer (CLO) Stuart Alderoty echoed this sentiment, advocating for the U.S. to end “regulation by enforcement.” Furthermore, he reiterated his stance on establishing a more crypto-friendly regulatory framework to position the country as a leader in digital assets.
Analyst Ross Vandermeer has taken an even bolder stance, suggesting that XRP price might climb as high as $1,000 following Trump’s victory. Such predictions highlight the market’s anticipation of favorable regulatory changes that could end the legal pressures on Ripple and XRP.
Nonetheless, some analysts argue that the recent $250 million transfer might temporarily impact investor sentiment. However, there is a prevailing belief that regulatory clarity under the new administration could ultimately strengthen XRP’s market position.