On-chain data shows the XRP whales have made some large outflows from the Binance exchange, a sign that may be positive for the asset’s price.
XRP Whales Have Made Some Transactions During The Past 24 Hours
According to data from the cryptocurrency transaction tracker service Whale Alert, a few large transactions have been spotted on the XRP network during the past day.
All of these transfers have been of a scale generally associated with whale entities. Whales are humongous investors capable of moving large amounts quickly across the market, thus having the potential to move the price of the asset.
As such, the moves made by these holders during the last 24 hours can be worth knowing about as, even if they don’t end up having any visible effects on the cryptocurrency, they can at least provide possible hints about the sentiment among these large investors.
First, the latest of these transfers involved the movement of 26,440,906 XRP, which was worth almost $13.2 million when the transaction went through on the blockchain.
Naturally, the consequences this transfer may have depend on the whale’s intent behind making it. It’s usually hard to say anything about it for sure, but the address details can sometimes provide some hints. Below are the details for this XRP whale transfer.
Looks like this transfer only took a negligible fee of 0.003 XRP to go through on the blockchain | Source: Whale Alert
As is visible above, the sending address in this transaction was a wallet attached to the cryptocurrency exchange Binance, while the receiver was an unknown wallet.
Unknown wallets aren’t affiliated with any known centralized platform and are likely to be the investors’ addresses. Moves like this, where coins go from exchanges to unknown wallets, are exchange outflows.
Investors may withdraw from the custody of these central entities to hold onto their coins for extended periods, so exchange outflows can potentially have a bullish effect on the price.
The second whale transaction from today was also an exchange outflow; just like this one, it involved the Binance platform.
The second exchange outflow from the past day | Source: Whale Alert
This exchange outflow was even greater, as the whale withdrew 30,406,274 XRP (around $15 million) from Binance with it. Naturally, these two whale outflows can be a positive sign for the cryptocurrency.
The third and oldest transaction from the past day, though, wasn’t so bullish. It was an exchange inflow, which is the opposite type of transaction.
The exchange inflow made by a whale during the last 24 hours | Source: Whale Alert
With this transaction, an investor deposited 30,320,000 XRP ($15 million) on the Bitstamp platform. Holders usually transfer their coins to exchanges whenever they want to use one of their services, which can include selling.
As such, exchange inflows can be bearish for the price. While this inflow is sizeable, it’s only large enough to cancel out one of the outflows, so a net amount of the asset has still fled the custody of exchanges during the past day.
XRP Price
XRP has experienced a drawdown of around 4% in the past week, pushing its price down to $0.50.
The price of the asset seems to have been moving sideways since the drop | Source: XRPUSD on TradingView
Featured image from Dall-E, whale-alert.io, chart from TradingView.com
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