On-chain data shows that XRP whales have been making net withdrawals from exchanges over the past day, a sign that could be bullish for the asset’s price.
XRP whales have made several moves in the past 24 hours
According to data from the cryptocurrency transaction tracking service Whale AlertSeveral large transactions have been spotted on the XRP blockchain over the past day.
All of these transfers are of a magnitude generally associated with the whalesthe largest investors in the market. Since these holders have the power to make such large movements, they can exert some influence on the network.
As such, the transactions of these huge investors may be worth monitoring, because even if they do not directly affect the market, they may nevertheless contain information about sentiment within this cohort.
However, it is difficult to say with certainty what the transaction implies for the asset. Nevertheless, the address information can sometimes provide some clues.
The first of last day’s whale transactions saw the movement of 38,783,752 XRP across the blockchain, worth approximately $20.5 million when the transfer was executed. Here are the addresses involved in this movement:
Looks like this move only required a negligible fee of 0.003 XRP to go through | Source: Whale Alert
As can be seen above, this XRP transaction came from a wallet attached to the cryptocurrency exchange Binanceto an unknown wallet. An “unknown wallet” refers to an address that is not affiliated with a known centralized platform and, therefore, is likely an investor’s wallet.
So it looks like the whale has pulled a lot of coins out of its wallet with this move. Investors typically make outflows like this when they plan to hold their cryptocurrencies for the long term, which can naturally have a bullish effect on the price.
Interestingly, the second and third oldest transactions of the day were also made from the same exchange, Binance, to unknown wallets. They were also executed around the same time as the first, suggesting that it is possible that they were all made by the same whale.
It’s hard to say for sure, though, since the receiving addresses differed for each of them. Regardless, Binance saw an outflow of around $57.3 million with these transactions.
While these withdrawals could potentially be bullish for XRP, the fourth and final whale transaction of the past day may not be as positive. This move, which saw the transfer of 28,070,000 tokens ($14.9 million), went from an unknown wallet to the Stamp-bit platform.
This transfer appears to have been an exchange inflow | Source: Whale Alert
Investors turn to exchanges when they want to use one of the services they offer, which may include selling. If the whale, in this case, made the transaction with the intention of selling, then the asset could experience a bearish effect.
However, even if this is the case, the outflows far outweigh these inflows, meaning that exchanges have still seen withdrawals of these XRP whale transactions on the net.
XRP Price
At the time of writing, XRP is trading around $0.52, up nearly 21% in the past seven days.
The price of the coin seems to have rallied during the past few days | Source: XRPUSD on TradingView
Featured image by Dall-E, whale-alert.io, chart by TradingView.com
