One of the top cryptocurrency exchanges in the world, Binance, has moved around $40 million worth of XRP to an unidentified wallet. This significant transfer has raised questions regarding the motivations behind such big transfers, which are frequently linked to whales—individuals or organisations who possess significant amounts of a certain coin.
Whale Alert, a website that tracks significant bitcoin transactions, was the first to report on the transaction. Almost 50.7 million XRP tokens, valued at approximately $26.2 million, were moved from Binance to an unidentified wallet, according to Whale Alert’s original tweet.
Not too long afterward, a further tweet revealed that around 26.2 million XRP coins, valued at approximately $13.5 million, had been moved from Binance to an unidentified wallet. The combined amount of these two significant transactions is almost 77 million XRP, or $40 million. The transactions show a lot of activity on the XRP market, which is sometimes an indication of impending market or investor mood changes.
XRP price and market reaction
The price of XRP was $0.5222 at the time of these transactions, indicating a little gain of 0.94% over the previous day. The 24-hour trading volume reached $1.038 billion, an increase of 85.39%. Increased interest and possible price volatility are frequently correlated with this spike in trading activity.
Understanding the market dynamics around XRP is further enhanced by analysing the technical indicators. Relative Strength Index (RSI) for the coin is 48.65 at the moment. A momentum oscillator that gauges the velocities and variations in price movements is the RSI. When the RSI falls below 50, it usually indicates that the market is losing steam and may continue to decline.
The notable whale activity, though, could buck this pattern. Significant whale acquisitions frequently indicate investor confidence in the asset and have the ability to raise prices when other investors follow suit. Whales purchasing XRP might be a sign of optimism for the coin’s future performance, which would entice more investors to purchase. Furthermore, because there would be less currency available, large purchases may result in price rises.
