Following a surge to $2.9, Ripple’s XRP has undergone a notable market correction. Recent days have seen a pullback in altcoins, with XRP dropping to a low of $1.89.
The current market situation has sparked discussions among analysts regarding its underlying causes. One analyst, JA_Maartun from CryptoQuant, has highlighted a potential shift in behavior among major holders.
Noteworthy Surge in XRP Whale Transfers to Binance
In their analysis, Maartun noted a substantial increase in whale deposits of Ripple into the Binance exchange, reaching a six-month peak.
Over the past month, more than 2.66 million XRP tokens have been moved to exchanges, marking a significant uptick in whale activity not seen since April.
These substantial inflows indicate that significant XRP holders are actively engaging with exchanges, particularly Binance, by transferring their tokens, signaling a potential change in their investment strategies.
Such large transfers by whales typically suggest strategic shifts, potentially moving from accumulation to selling mode.
When whales move substantial amounts to exchanges, it could indicate their intention to sell, actively engage in selling, or enhance liquidity.
Effect on Price Trends
Massive transfers to exchanges by whales often signal a predisposition to sell, hinting at bearish sentiment among major holders aiming to capitalize on recent market gains and expecting a price dip.
Despite the notable inflow of XRP into exchanges by whales, the altcoin’s price charts have not displayed any negative repercussions.
In fact, XRP has shown moderate gains on daily charts, with its current trading price at $2.33, reflecting a 5.03% increase daily but a 10.23% decline weekly.
This price recovery indicates that, despite whale transfers, the XRP market remains optimistic, with bullish investors striving to recapture market control.
Analysts at CryptoCrypto have observed a consistent drop in the exchange supply ratio over the past month, suggesting that while whales are transferring tokens, a significant number of investors are holding their assets away from exchanges.
This trend is noteworthy as XRP’s exchange-to-flow balance has decreased to -334k, indicating more assets are leaving exchanges than being deposited.
As a result, the available supply for trading diminishes, thus alleviating selling pressures.
Despite the heightened whale inflows into Binance, XRP investors retain their bullish stance, with buyers aiming to regain market dominance.
If the bulls continue to dominate over bears, XRP could reattain levels around $2.6 and potentially target $3. Conversely, sustained transfers to exchanges inducing panic selling could see XRP finding support around $1.8, with a breach signaling further decline towards the critical support level of $1.5.