XRP price has been caught in a tight trading range over the past two weeks, fluctuating between $0.55 and $0.52. The price has been largely influenced by ongoing developments in the SEC v. Ripple lawsuit, keeping investors on edge. However, a new wave of market uncertainty has emerged as Tesla reportedly transferred 11,500 BTC to unknown wallets.
This move has sparked speculation about a potential sell-off, which could create ripple effects across the crypto market, impacting not just Bitcoin but also altcoins like XRP. The price of Ripple has dropped by 0.7% in the last 24 hours and is trading at $0.54. With volatility on the horizon, the question remains: can XRP withstand the pressure if Tesla decides to liquidate its BTC holdings?
Tesla’s Potential Bitcoin Dump Impact on XRP Price?
Tesla’s recent transfer of its Bitcoin holdings to unknown wallets has raised questions about whether this is merely internal reallocation or the prelude to a sale. The company distributed 11,500 BTC, valued at approximately $769 million across seven wallets.
Without an official statement from Tesla, all eyes are on its Q3 earnings report, scheduled for October 23, which may shed light on the company’s intentions behind this move.
Meanwhile, XRP’s price has been moving sideways for most of “Uptober.” It is currently retracing after gaining 5% between October 13 and 14. The overall crypto market has dropped by 0.4%, likely influenced by the fear, uncertainty, and doubt (FUD) surrounding Tesla’s Bitcoin transfer.
Despite this, the general market sentiment remains bullish, with the Bitcoin Fear and Greed Index rising from 65 to 73 in just one day. Such optimism could benefit the XRP price if Tesla does decide to offload its Bitcoin holdings.
Ripple Price If Tesla Sells $769M BTC
Ripple price is currently at a risky spot due to negative market conditions. The asset has been trending inside a rising channel since April 2022. Rising channels are generally bullish patterns but also have a chance of breaking out to the downside.
Germany’s decision to unload roughly $3 billion in seized Bitcoin likely drove BTC’s price down from approximately $65,000 to $55,800 in early July. If $769 million worth of the asset is dumped, the price could drop an estimated 3.81%, bringing BTC down to $64,619.
However, the ensuing panic in the market would cause losses more dramatic than the ones calculated here. Psychological stop-loss zones on the XRP price chart would cause sell pressure to increase until the price reaches these points.
XRP Price Analysis: Can Ripple Survive The Tesla BTC Dump?
For instance, the XRP chart below shows the asset has been in a rising channel since mid-2022, where the price has been consistently making higher highs and higher lows. This suggests that the long-term trend remains bullish.
The price is trading near the bottom of this rising channel, which is a critical position within this bullish structure.
If Tesla sells its BTC, the XRP price may slide below the immediate support at $0.52 and drop lower to $0.44. If the Ripple price breaks below this level, it could see a deeper correction near $0.32. While this would disrupt the current bullish thesis, XRP would still survive and rise another day.
The nearest resistance is around $0.69 (channel midline). If XRP breaks this level, the price may move to test the upper boundary of the channel around $0.92, a 69% increase from the current price.
With this in mind, if the XRP price breaks lower for long-term positions, accumulation near $0.44 with a wider stop-loss near $0.32 could offer a good risk/reward for holding, with targets near the upper boundary of the channel at $0.92.
The post Can XRP Price Survive If Tesla Dumps 11,500 BTC? appeared first on CoinGape.
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