Data shows the XRP whale has taken $38 million from the crypto exchange Binance. Could this be a bullish signal for crypto prices?
XRP Whale Has Almost $38 Million From Binance
As data from the crypto transaction tracker service Beware the Pope, a large XRP transaction has appeared on the Ripple blockchain over the past few days. This transfer involved the movement of 94,311,360 tokens, worth almost $38 million at the time of the transaction.
Because the amount involved here is huge, the sender of this transfer could be a whale or it could be an entity made up of several very large investors. Due to their large size, these transactions can sometimes have visible effects on the market.
How the price will respond to the movement of any whale depends on the exact purpose behind the transfer. But why did the pope make this transaction, in this case? The answer to that question may lie in the full details of this movement. These are:
Details of the massive transfer that took place on the Ripple blockchain today | Source: Whale Alert
As shown above, the sender, in the case of this XRP transfer, is a wallet attached to the Binance crypto exchange, while the receiver is an unknown address. Such unknown addresses are not associated with any known centralized platform and therefore may belong to private wallets. This kind of transfer, where investors withdraw coins from an exchange to their personal wallet, is known as “exchange outflow.”
In general, the owner keeps the coins on the exchange so that they are ready to sell quickly at the desired price point. Instead, they bring it to an offsite wallet when they plan to hold their coins for a long time. Because of this, a large number of exchange flows can affect the price of crypto.
In the case of the current transaction, it appears that the whale is sending these tokens for accumulation-related purposes. And if that’s the scenario, then this massive outflow can build for the value of XRP.
Crypto has rallied in the last week or so (although not as much as the likes of Bitcoin or Ethereum), which means that whales have made this accumulation when prices have been relatively high.
Usually, investors want to take profits from opportunities like today. Still, this humongous owner choosing not to do so now could be a sign of more confidence from him about crypto’s prospects.
The price of XRP
At the time of writing, XRP is trading around $0.386, up 9% over the past week.
The value of the crypto seems to have been overall consolidating sideways in the last couple of days or so | Source: XRPUSD on TradingView
Featured image from Abigail Lynn on Unsplash.com, chart from TradingView.com