XRP Price showed remarkable movement over the last month even as whale activity surged. In the last month alone, XRP whales have moved 2.66 billion XRP tokens to Binance.
Currently the leading cryptocurrency exchange in terms of trading volume. This is the highest level of XRP inflows in the last six months, as indicated by data from CryptoQuant.
These large values suggest that the major XRP holders are more active. And it is unclear what their trading strategies are.
Whales movements are often used to determine future trends of the market. The inflows to Binance come amid increased investor interest in XRP, which has risen by 300% in the last month.
XRP Price Surges Before Correction
XRP price has also been quite volatile in the past few weeks and hit a multi-year high of $2.9092.
This impressive rally was in response to increased buying pressure from both retail and institutional investors in the token.
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Nevertheless, after reaching the highest level, the price returned to below $2.5. However, still shows an increase of 3% in the past 7 days.
Historically, such large inflows into exchanges have been seen as a precursor to sell off. Such whale activities were observed in April 2024 and November 2022 which were followed by price declines of 20.4% and 12%, respectively.
Experts also observe whether the current whale activity can cause another price shift.
Furthermore, Binance has become an important part of the XRP community as it holds around 1.8 billion XRP with a value of 4.26 billion dollars. This makes Binance the second largest holder of XRP after Ripple’s escrow accounts and Uphold wallets.
Whale activity focused on Binance is evidence of the platform’s status as a liquidity center for XRP trading.
Despite these inflows indicating increased market trading, the potential for whales to liquidate their holdings cannot be disregarded.
If implemented, such moves put downward pressure on the price of XRP soon.
Ripple’s Large XRP Transfers Add to Market Dynamics
Besides whales’ movement, the price of XRP has also been impacted by Ripple transferring a large amount of XRP tokens.
Whale Alert, a blockchain tracking service, has claimed that Ripple moved 580 million XRP through several transactions valued at more than $1.4 billion.
The largest of these was the transfer of 380 million XRP to an unidentified wallet linked to Ripple.
These transfers occurred simultaneously with the New York Department of Financial Services greenlighting the listing of Ripple-USD (RLUSD) stablecoin.
This approval has positively impacted the XRP community, rallying the currency’s price back from a low of $2 up to $2.40.
Historical patterns of sell-offs may present themselves in the future, but XRP’s ecosystem is looking bullish with backing from the regulators and increasing usage.
At press time, XRP is priced at $2.42, rising by 1.72% in the last day and a staggering 260% within the last month.
The cryptocurrency traded between $2.34 and $2.48 during the same period. Since XRP is still priced close to its all-time high of $3.84, there has been a rise in interest due to the rise in whale activity.
