On-chain data shows XRP whales have made some moves over the past day. Here’s what these giant entities do.
XRP whales made a number of exchange-related transfers over the past day
Based on data from on-chain transaction tracking services whale alertIn the past 24 hours, three large transactions were discovered on the XRP network.
The first of these transfers involved the movement of approximately 28.7 million XRP on the blockchain, and was worth approximately $14.7 million at the time of completion.
Given the scale of this move, it’s likely that a whale entity was behind it. Whales can be influential online due to the large amounts of money they hold, so their actions are worthy of attention as they can cause significant moves in the market.
What the whale movement could mean for cryptocurrencies depends on the intent behind it. Here are the details about the first XRP whale transfer, which may reveal its background.
Looks like this transfer only needed a negligible fee of 0.000015 XRP to go through on the network | Source: Whale Alert
As you can see above, the XRP whale transaction was sent from an unknown wallet. Meanwhile, the recipient is an address affiliated with the cryptocurrency exchange Bitstamp.
“Unknown wallet” refers to an address that is not associated with any known central entity. As such, they are typically personal, self-custodial wallets for investors.
In this transfer, the whales appeared to move their coins from their addresses to Bitstamp, indicating that they wanted to use one of the platform’s services. This may include a sale, although this is not certain.
If the whale wanted to sell, then the transfer would naturally have negative consequences for the asset. Like this transfer, the second inflow in the past 24 hours was also an exchange inflow, this time to Binance.
The second whale transaction from the past day | Source: Whale Alert
The transaction involved an amount of 100 million XRP ($51.3 million), almost four times the size of the previous transaction. If these whales sell here, it could be a sign of trouble for the cryptocurrency.
However, the third and latest whale trade may offset some, if any, negative impact these exchange inflows may have had.
The final large transaction from the last 24 hours | Source: Whale Alert
Unlike the other two whale transactions, this was an exchange outflow transaction, flowing out of Binance and to an unknown wallet. A closer inspection of the addresses involved revealed that the same Binance address was involved in both this and the second transfer.
This could indicate that whales who deposited large sums of money into Binance have now withdrawn the funds. Investors withdrew only 20.6 million XRP ($10.5 million), which is significantly less than the amount they had previously deposited.
Ripple price
XRP has fallen around 5% in the past day, with the token currently floating around $0.5. Given this trend, it’s likely that at least some of the funds whales deposited today were for sale.
The price of the asset appears to have taken a plunge today | Source: XRPUSD on TradingView
Featured image via Swanson Chan on Unsplash.com, chart via TradingView.com
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