XRP whale has taken out $38 million from Binance, can this be a bullish signal?

According to Whale Alert data, a huge XRP transaction has been noticed on Ripple in the last day. This transaction entailed the transfer of 94,311,360 tokens worth over $38 million at the time of the transaction.

XRP Whale Withdraws $38M From Binance, Bullish?

Because the sum involved is so large, the sender of this transfer is most likely a whale or a group of numerous large investors. Because of their size, such transactions can significantly impact the market.

The price response to each whale movement is determined by the particular intent underlying the transfer. But, in this scenario, why did the whale conduct this transaction? The answer to that question may be found inside the complete contents of this movement.

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.

In the case of this XRP transfer, the sender was a wallet linked to the crypto exchange Binance, while the receiver was an unknown address, as seen above. Such unidentified addresses are not associated with any known centralized platform and are most likely related to personal wallets. Transfers like these, in which investors remove their coins from exchanges and deposit them in personal wallets, are called “exchange outflows.”

In the context of the current transaction, it appears that the whale transferred these tokens out for possible accumulation objectives. And if that is the case, then the big outflow can be beneficial to the value of XRP.

In general, holders retain their currencies on exchanges so that they can sell them immediately at the desired price. When they intend to keep the coins for an extended period, they transfer them to offshore wallets. As a result, a large volume of exchange outflows can favor the price of the cryptocurrency.

The currency has already been surging in the last week (though not as drastically as Bitcoin or Ethereum), implying that the whale has made its accumulating move at a time when prices are quite high.

Typically, investors want to profit from opportunities like this one. Nonetheless, this massive holder’s decision not to do so now may signify their continued confidence in the crypto’s potential.

xrp-whale-has-taken-out-38-million-from-binance-can-this-be-a-bullish-signal

XRP/USD 4-hour chart | Source: TradingView

XRP is currently trading around $0.386, up 9% in the previous week.

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