Data shows an XRP whale has withdrawn an amount of $19.7 million in the token from Binance, a sign that may be bullish for the asset’s price.
XRP Whale Transfers Out 50,304,136 Coins From Crypto Exchange Binance
As per data from the cryptocurrency transaction tracker service Whale Alert, a large XRP transfer has been spotted on the Ripple blockchain during the last few hours.
This transaction involved the movement of a total stack of 50,304,136 tokens, which was worth a little more than $19.7 million at the time the transfer was executed on the network.
Since the numbers involved here are pretty big, the sender behind this transaction is likely to be a whale. These humongous investors make up an important part of the XRP market, as their wallet balances are pretty huge, which gives them the ability to quickly move large amounts.
Especially large transfers, like the one witnessed today, can be something to watch for as the sheer scale of coins involved in them can sometimes cause noticeable shifts in the price. But which way any such transaction would move the market depends on the exact intent behind it.
Here are the details of today’s transfer that reveal which wallets were involved in it, which is something that can help shed some light on the reason behind it:
The large transaction that took place on the Ripple blockchain in recent hours | Source: Whale Alert
The sending address of this XRP whale transfer (visible in the above image) was a wallet attached to the cryptocurrency exchange Binance, according to Bithomp. The receiver, on the other hand, was an unknown address that had no known affiliations with any centralized platforms and was thus likely to be a personal wallet.
Transactions like this one where coins move from an exchange to an offsite wallet are called “exchange outflows.” Generally, users withdraw their coins from these platforms for holding onto them for extended periods, which means that large outflows can have bullish effects on the price.
In the present case, the large outflow can suggest that the whale is doing some XRP accumulation right now. If it’s indeed so, then the price could see a constructive effect in the long term from this.
However, another possible scenario is that the whale might have actually made this outflow to sell the coins through an over-the-counter (OTC) deal. If this holds true instead, then the asset may see a bearish impulse from the sale.
At the time of writing, XRP is trading around $0.39, up 6% in the last week.
Looks like the cryptocurrency has been moving sideways during the last few days | Source: XRPUSD on TradingView
In terms of market cap, XRP continues to be the sixth largest cryptocurrency in the sector, with the asset having gained quite the gap on the next best, Cardano (ADA).
The coin seems to have a market cap of $19.9 billion currently | Source: CoinMarketCap
Featured image from Kanchanara on Unsplash.com, chart from TradingView.com