Data shows an XRP whale has taken out $38 million from the crypto exchange Binance. Can this be a bullish signal for the crypto’s price?
XRP Whale Has Withdrawn Almost $38 Million From Binance
As per data from the crypto transaction tracker service Whale Alert, a large XRP transaction has been spotted on the Ripple blockchain during the past day. This transfer involved the movement of 94,311,360 tokens, worth almost $38 million at the time of the transaction.
Since the amount involved here is so massive, 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, such transactions can sometimes cause noticeable effects on the market.
How the price would respond to a movement from any whale depends on the exact intent behind the transfer. But why did the whale make this transaction, in this case? The answer to that question might be inside the full details regarding this movement. Here are they:
Details of the massive transfer that took place on the Ripple blockchain today | Source: Whale Alert
As shown above, the sender, in the case of this XRP transfer, was a wallet attached to the crypto exchange Binance, while the receiver was an unknown address. Such unknown addresses are unaffiliated with any known centralized platform and thus likely belong to personal wallets. 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 (although not as sharply as the likes of Bitcoin or Ethereum), which means that the whale has made this accumulation move while prices are already relatively high.
Usually, investors want to take profits from opportunities like now. Still, this humongous holder choosing not to do it currently could be a sign of further conviction from them about the prospects of the crypto.
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 | Source: XRPUSD on TradingView
Featured image from Abigail Lynn on Unsplash.com, chart from TradingView.com