Data shows that an XRP whale withdrew $38 million from the Binance crypto exchange. Can this be a bullish signal for the price of crypto?
XRP Whale Withdrew Nearly $38 Million From Binance
According to data from Crypto Transaction Tracking Service whale alert, a large XRP transaction was spotted on the Ripple blockchain in the last day. This transfer involved the movement of 94,311,360 tokens, worth nearly $38 million at the time of the transaction.
Since the amount at stake here is so huge, the sender of this transfer is likely to be a whale or perhaps an entity made up of several significant investors. Due to their magnitude, such transactions can sometimes have significant effects on the market.
How price would react to a move by any whale depends on the exact intention behind the transfer. But why did the whale make this transaction, then? The answer to this question could be found in all the details concerning this movement. Here they are :
Details of the massive transfer that took place on the Ripple blockchain today | Source: Whale Alert
As noted above, the sender, in the case of this XRP transfer, was a wallet attached to the Binance crypto exchange, while the recipient was an unknown address. These unknown addresses are not affiliated with any known centralized platform and therefore likely belong to personal wallets. Transfers like these, where investors withdraw their coins from exchanges to personal wallets, are known as “currency outflows.”
Typically, holders keep their coins on the exchange to be ready to sell quickly at the desired price. However, they take them to offsite wallets when they plan to hold the coins for an extended period of time. For this reason, a large amount of forex outflows can affect the crypto price upwards.
In the case of the current transaction, it would appear that the whale transferred these tokens for potential accumulation-related purposes. And if that is indeed the scenario, then this massive outflow can be constructive for the value of XRP.
The crypto has already rallied over the past week (although not as strongly as Bitcoin or Ethereum), meaning the whale made this accumulation move when prices are already relatively high.
Usually, investors want to take advantage of opportunities like now. Still, this huge holder choosing not to currently could be a sign of further conviction on his part about the prospects of the crypto.
As of this writing, XRP is trading around $0.386, up 9% in 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 of Abigail Lynn from Unsplash.com, chart from TradingView.com