On-chain data reveals that XRP whales have been engaging in significant exchange inflows within the past 24 hours, signaling potential negativity for the asset’s price. Whale Alert, a cryptocurrency transaction tracking service, reported that the XRP network has seen four large-scale transactions during this timeframe, with each transfer valued at least $10.9 million. Considering the sheer magnitude of these moves, it is highly likely that these transfers were initiated by influential whale entities who hold substantial amounts of XRP in their wallets. Consequently, their actions could potentially cause market fluctuations.
The influence of these whale transactions on the market price depends on the intent behind them. Determining the exact motive behind any transaction is often challenging, but by examining the type of transfer and the wallets involved, some insights can be gleaned. Three out of the four large whale transactions from the past day share a similar structure. For instance, one such transaction involved the movement of 24.6 million XRP (equivalent to over $15 million) between an unknown wallet and an address associated with the cryptocurrency exchange Bitstamp. The sender address, which is likely the whale’s personal wallet, belongs to an unknown entity.
An investor typically transfers coins from their self-custodial wallet to an exchange for selling purposes. Therefore, it is plausible that this significant holder made such a move to divest their XRP stack. Interestingly, the second exchange inflow transaction from the last 24 hours also appears to have been initiated by the same whale, as the sender addresses match. However, the recipient of this transaction, which was worth 18 million XRP (approximately $10.9 million), is not Bitstamp but instead the exchange Bitso. This suggests that this particular whale may be utilizing multiple exchanges for their transactions.
The third exchange inflow involves both different sender and receiver addresses, indicating the involvement of a distinct whale in this transfer of 20 million tokens (around $12.1 million). It is important to note that the intent behind these moves remains uncertain. However, considering that they are exchange inflows, it is possible that they may ultimately have a bearish impact on the cryptocurrency’s price.
Interestingly, the oldest and most substantial transaction within the given time frame suggests that Ripple, the company behind XRP, was the sender. Ripple appears to have transferred 120 million XRP (valued at approximately $73.8 million) to an unknown wallet. The reasons behind such a transaction could range from a simple change of wallets to a selling move.
XRP has predominantly experienced sideways movement in recent weeks, with its current trading value hovering around $0.61886. This price stagnation may be a result of the large whale transactions and the overall market sentiment.
The activity of XRP whales making significant exchange inflows has prompted concerns about potential market fluctuations. The motives behind these whale transactions remain unclear, but they have the potential to affect the price of XRP. The involvement of multiple whales and Ripple’s own large transaction add complexity to the situation. As always, it is advisable to conduct thorough research and exercise caution before making any investment decisions.