Analysts from the market intelligence platform CryptoQuant say the recent bitcoin (BTC) moves by the defunct crypto exchange Mt. Gox are no cause for alarm and would cause no immediate selling pressure on the digital asset.

According to the latest weekly report from the analytics firm, the transfers were executed between Mt. Gox’s trustee addresses and are not a sign that creditor repayments have begun.

No Cause for Alarm

On May 27, on-chain analysts noticed the movement of 138,000 BTC, worth roughly $9.4 billion at bitcoin’s trading value at the time, from wallets holding them since 2018. CryptoQuant said the transfers happened within five hours, sparking concerns amid the crypto community about the effect of such transactions.

The cryptocurrencies were moved via seven different transactions with volumes ranging between 4,000 and 32,000 BTC. The whole stash was initially moved to a single address before being distributed to three different addresses. At the time of writing, the addresses held 47,400 BTC each.

The crypto community speculated that the transfers marked the onset of distributions to Mt. Gox creditors. CryptoPotato reported that BTC lost 4% of its value as news of the transfers spread. Community members also raised concerns about the asset’s price slumping further if the exchange’s creditors decided to liquidate their holders immediately after they received them.

Contrary to what the majority of the community thinks, the new addresses that received the bitcoins belong to Mt. Gox’s Rehabilitation Trustee, which is the attorney managing the creditors’ repayment process.

Mt. Gox Creditor Repayments Have Not Begun

An announcement dated May 28 informed that the exchange has neither begun making repayments to creditors nor sold any BTC or cryptocurrency in that regard.

“The type of transfers, where an entity consolidates a large amount of Bitcoin scattered in several addresses into a few addresses, seems to be the prelude of the Trustee initiating repayments to creditors under the Rehabilitation Plan. How long it would take for the repayments to start is yet to be seen,” CryptoQuant stated.

Hence, CryptoQuant analysts believe the transactions would cause no immediate sell pressure for BTC as the assets in question are not yet available to the open market.

After a few days of sideways trading, bitcoin’s price headed south on Friday and slipped to a weekly low of around $66,600 before it recovered approximately a grand.

The altcoins are quite sluggish today, with ETH gaining about 1% of value and closing down on the $3,800 mark.

BTC Recovers

The start of the business week went under the total domination of the bulls as they drove the primary cryptocurrency from under $69,000 to a weekly high of over $70,500. As hope started to emerge about a potential challenge to the all-time high of $73,800, though, the landscape changed and BTC slumped by more than three grand by Tuesday.

More volatility ensued in the following days, but bitcoin ultimately remained in a range between $67,000 and $69,000 with a short-lived attempt to overcome the latter on Thursday. The subsequent rejection pushed the asset south hard, and it fell by $3,000 to $66,600 yesterday, which became its lowest price tag in about a week.

The bulls finally reemerged at this point and didn’t allow any further declines. Just the opposite, BTC spiked by roughly $1,000 and now sits between $67,500 and $68,000.

Its market capitalization has slipped to $1.330 trillion, and its dominance over the alts sits tight at 50% on CG.

ETH Aims at $3.8K

Somewhat expectedly for the weekend, the price actions have diminished. Ethereum is up by around 1% on a daily scale and now sits close to $3,800, but this movement is far from the volatile ride that the asset went through last week amid the ETF news.

BNB, SOL, XRP, ADA, and DOT are with insignificant gains, while LINK and PEPE have increased by around 3-4% in a day.

In contrast, SHIB slumped by almost 3%, while UNI slumped by 6% and is close to breaking below $10.

The total crypto market cap has seen about $20 billion gone in a day and is down to $2.660 trillion.

TL;DR

• XRP has stayed stable between $0.51 and $0.54 despite market volatility, with analysts predicting a potential rise due to its low RSI ratio.
• The upcoming launch of a Ripple stablecoin, a possible XRP ETF, and a settlement in the lawsuit against the US SEC could also drive a price increase.

Is XRP Ready to Spike?

While the cryptocurrency market experienced substantial volatility in the past few weeks, Ripple’s XRP remained relatively unfazed. Its price has recently consolidated in the $0.51-$0.54 range and is currently trading at the lower line. 

Still, many analysts believe the asset will head north in the near future, citing some important factors. The X user EGRAG CRYPTO assumed that XRP could soon turn into a bullish mode due to the low RSI ratio.

The Relative Strength Index is a momentum oscillator used in technical analysis to measure the speed and change of price movements. It varies from 0 to 100, with a ratio above 70 generally indicating that an asset is overbought and due for correction. XRP RSI has been well below the 50 mark in the past few days, currently positioned at 40.

AlexCobb touched upon the matter, too, outlining several essential elements that could fuel a rally for the asset. The upcoming launch of a Ripple stablecoin, potential filing for an XRP ETF, and a possible settlement of the lawsuit between the company and the US Securities and Exchange Commission (SEC) are some of the factors.

The legal battle between the two entities has been ongoing for over three years, with the case recently entering its trial phase. Some industry participants believe Ripple has the upper hand in the lawsuit after securing three partial court victories last year.

Each triumph was followed by a significant XRP price resurgence, meaning a decisive win might fuel another rally. If you are curious to learn more about the case’s specifics and its impact on the token’s valuation, please check our dedicated video below:

Previous XRP Forecasts

The X users JAVON MARKS and Dark Defender also chipped in with optimistic predictions. Similar to EGRAG CRYPTO, the former pointed to the RSI pattern as a contributing element to a potential XRP price increase in the range of $15-$20.

Dark Defender was bullish, too, albeit envisioning less impressive peaks. Most recently, the analyst claimed XRP’s initial targets are $0.5882 and $0.6044. Prior to that, the X user forecasted a spike toward $1.88 should the coin’s weekly candle close above the $0.66 mark.