XRP Whales Show Exchange Inflow Activity, Bad Sign For Price?
December 21 2023 - 8:00AM
NEWSBTC
On-chain data shows that XRP whales have been making exchange
inflows in the past day, a sign that may be negative for the
asset’s price. XRP Whales Have Made Multiple Large Exchange Inflows
Today According to data from the cryptocurrency transaction tracker
service Whale Alert, the XRP network has handled a few large
transactions during the last 24 hours. In total, there have been
four such transfers, each worth at least $10.9 million. Given the
huge scale of these moves, it’s likely that whale entities were
responsible for them. Related Reading: Ethereum Retests Breakout
Zone, Analyst Sets $3,500 Target The whales are naturally
influential players on the network as they carry large amounts in
their wallets. Thus, their transfers can be worth watching, as they
may end up causing fluctuations in the market. How such a transfer
would influence the price depends on what the intent behind it was.
It’s generally hard to find the exact motive behind any
transaction, but depending on what type of transfer it was and
which wallets were involved, some hints can perhaps be gathered.
Three of the whale transactions from the past day have been similar
in structure. Here are the address details of the first of these
large transfers: Looks like this massive move only took a
negligible fee of 0.000015 XRP to be possible | Source: Whale Alert
As is visible above, this transaction involved a movement of 24.6
million XRP (worth over $15 million at the time the transfer went
through) between an unknown wallet and an address attached to the
cryptocurrency exchange Bitstamp. Unknown wallets are addresses
unaffiliated with any known central entity, so the sender address
here was likely the whale’s personal wallet. One of the main
reasons why an investor would transfer coins from their
self-custodial wallets to an exchange is for selling purposes, so
it’s possible that this humongous holder has made this move to part
with the stack. Interestingly, the second exchange inflow
transaction from the last 24 hours also appears to have been made
by the same whale, as the sending addresses match. The second
exchange inflow from the past day | Source: Whale Alert While the
receiver in the case of this transaction worth 18 million XRP
($10.9 million) is also an exchange, the platform is Bitso this
time, and not Bitstamp as was the case with the other transfer. The
third and final exchange inflow seems to have involved both a
different sender and receiver, suggesting that a different whale
entirely was responsible for this 20 million tokens ($12.1 million)
transfer. The latest of the XRP whale transactions | Source: Whale
Alert As mentioned earlier, it’s hard to say for sure anything
about the intent behind these moves, but given that they are
exchange inflows, they can potentially end up proving to be bearish
for the cryptocurrency. Related Reading: Dogecoin Whales Are On The
Move: A Worrying Sign? The fourth and the oldest large transaction
that has occurred inside this window was actually the largest one
and it would appear that Ripple, the company behind the
cryptocurrency, was the sender involved. Ripple seems to have made
a large outflow | Source: Whale Alert As is apparent above, the
firm has shifted 120 million XRP ($73.8 million) to an unknown
wallet. There can be many reasons why the company would have made
such a transaction, ranging from a simple change of wallets to a
selling move. Token Price XRP has mostly been moving sideways
recently as it currently trades around the $0.61886 level. The coin
appears to have gone stale during the past few weeks | Source:
XRPUSD on TradingView Featured image from Kanchanara on
Unsplash.com, chart from TradingView.com
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