The XRP price has seen an impressive rise over the past day after news broke that the US Securities and Exchange Commission (SEC) had dropped the lawsuit against Ripple executives. This increase continued on Friday when the price of the altcoin managed to reach $0.53. Obviously there is a decline from this price level, but whale trades indicate that the rally may not be over yet.
Crypto whales are increasing their purchasing power
Over the past day, crypto whales have shown their purchasing power as the price of cryptocurrencies such as XRP recovered. The first indication of this was a number of large USDT transactions making their way to centralized exchanges.
The first of these reported whale tracker Whale Alert transferred $100 million in USDT to Binance. This was followed by two other transactions involving the same number of tokens, all of which also went to the Binance exchange. Another 50 million USDT would make their way to the fair just a few hours later.
As Thursday came to a close, the issuance of $1 billion USDT at the Tether Treasury took place. What followed was a number of transactions with USDT in tranches of 50 million, on their way to Binance. The trades continued through Friday, with the most recent being two hours old at the time of writing.
XRP remains bullish | Source: XRPUSDT on Tradingview.com
What this means for the XRP price
The continued transfer of stablecoins to centralized exchanges can often indicate a willingness to purchase cryptocurrencies. Typically these purchases are in Bitcoin, but the purchasing power tends to have a trickle-down effect. This means that as the price of Bitcoin rises, the price of XRP also rises.
In this case, if whales continue to buy and push the Bitcoin price past $30,000, the XRP price is likely to follow suit and break the $0.55 resistance. However, XRP price is also facing strong resistance as whales have started selling.
As Whale Alert shows, there were a number of large XRP transactions heading to centralized exchanges. The most notable of these are the 32.3 million XRP worth $15.79 million that were sent to the Bitso exchange at the time, as well as the 31.1 million XRP worth $15.2 that went to the Bitstamp exchange.
These whale movements suggest a battle between bulls and bears as they battle for dominance. But the XRP price remains strong with an increase of 7.44% in the past 24 hours and an increase of 6.94% in the past seven days.
Featured image from Bitcoinist, chart from Tradingview.com