XRP could be a witness a huge sell-off in the coming days, as evidenced by on-chain transfer data. According to transaction alerts from crypto whale tracker Whale Alerts, two whale-sized transactions involving XRP recently hit cryptocurrency exchanges Bitso and Bitstamp, prompting investors to ponder the reasons behind the transactions and speculate about possible outcomes.
Massive transfers by whales can often increase selling pressure as they sell and take profits, which could feed into the price of the asset, even if only temporarily.
Whale transfers 50 million XRP to exchanges
XRP has undergo consolidation in the middle for the past two weeks of a market lull. According to Coinmarketcap, the altcoin’s trading volume has also fallen by 43.59% over the past 24 hours. However, before this period, a whale made a transfer of 50 million
According to Whale Alerts, there is a transfer of 25.2 million XRP tokens worth $15.66 million was made to exchange Bitstamp on November 23rd. Shortly after, 25 million XRP tokens were valued at $15.55 million were sent to crypto exchange Bitso. Investigating the details of the two transactions on blockchain researchers reveals that they were made from the same address “r4wf7e”.
Total crypto market cap is currently at $1.4 trillion. Chart: TradingView.com
A deeper look reveals that address “r4wf7e” received 55.87 million tokens from address “rJgpQR” and proceeded to spend heavily in the hours that followed. The next few hours would be full of transactions ranging from 20,000 to 25 million XRP tokens to Bitstamp, Bitso, Independent Reserve, and some private addresses.
Speculation on why the whale is now moving XRP
The transfers to various exchanges have indicated that the whale intends to sell its assets. However, there could be other reasons for the transfers, namely that the whale wants its XRP immediately available on the exchanges, without even selling.
Of course, this is all speculation. There is no way to know the exact intentions of the whale, or how many tokens they plan to buy or sell, if any. But when such large amounts hit the stock exchanges, it often signals future volatility.
On the other hand, data from the on-chain analytics platform has shown that whales purchased 11 million tokens worth $6.82 million in the just-concluded week. The buying frenzy suggests there may still be bullish sentiment among some whales.
#Ripple | Data about the chain shows this #XRP whales bought about 11 million $XRP in the past week, worth approximately $6.82 million! pic.twitter.com/VnWpaMoOYR
— Ali (@ali_charts) November 25, 2023
XRP is trading at $0.62 at the time of writing. The cryptocurrency crlost more than $0.7 again earlier this month, but has struggled to continue this momentum. However, according to crypto analyst CryptoInsightUK, it’s all about the token has a good chance of replication the 61,000% gain it enjoyed in 2017 before the SEC lawsuit.
Another analyst, Edward Farina, predicted that Ripple has done that the potential to replace the current SWIFT system, after which XRP could rise to $10,000.
Featured image from Pixabay
