2 - 3 minute read
A large XRP transaction has recently been spotted on the Ripple blockchain, with data from crypto transaction tracker service Whale Alert showing that a total of 94,311,360 tokens, worth almost $38 million, were moved. The sender of this transfer is likely to be a whale, or perhaps an entity made up of multiple sizeable investors. Due to the sheer scale of this transaction, it can sometimes cause noticeable effects on the market.
The transfer involved a wallet attached to the crypto exchange Binance sending the tokens to an unknown address. Transfers like these, where investors withdraw their coins from exchanges to personal wallets, are known as “exchange outflows.” Generally, holders keep their coins on exchanges to be ready to sell quickly at their desired price points. However, they take them out to offsite wallets when they plan to hold onto the coins for an extended period. Because of this, a large amount of exchange outflows can bullishly affect the price of the crypto.
In the case of the current transaction, it would appear that the whale transferred out these tokens for potential accumulation-related purposes. And if it’s indeed the scenario, then this massive outflow can be constructive for the value of XRP. The crypto has already been rallying in the past week or so, which means that the whale has made this accumulation move while prices are already relatively high.
This large transaction could be a sign of further conviction from the whale about the prospects of XRP, as investors usually want to take profits from opportunities like now. At the time of writing, XRP is trading around $0.386, up 9% in the last week. The value of the crypto seems to have been overall consolidating sideways in the last couple of days or so.
In conclusion, while it’s hard to predict the future of XRP price, the massive outflow from Binance by a whale can be seen as a bullish signal, as it indicates that the investor has faith in the crypto and plans to hold on to it for an extended period. However, It’s important to remember that crypto markets are highly volatile and one should always do their own research and invest at their own risk.