- XRP saw a moderate price recovery over the past day, increasing by 5.03%.
- Ripple whale influx to Binance reaches 6-month high.
Since hitting $2.9, Ripple’s (XRP) has seen a sharp market correction. Over the past few days, altcoins have retraced and XRP has also seen a significant decline, reaching a low of $1.89.
Current market conditions have caused analysts to reflect on the factors behind them. To the extent that, CryptoQuant analyst JA_Maartun highlighted a potential shift in strategy among whales.
XRP whale influx to Binance hits 6-month high
In his analysis, Maartun observed that Ripple’s whale deposits into Binance reached their highest level in six months.
Source: CryptoQuant
According to him, over the last thirty days, more than 2.66 million XRP tokens have been transferred to exchanges.
This is the first time since April that Ripple has experienced such massive transfers from large holders, signaling a sustained increase in whale activity.
These large inflows suggest that large XRP holders are actively moving their tokens across the network while interacting with exchanges, particularly Binance.
Whale beds are generally a sign of a change in strategy, as these players have considerable assets. This change could involve a shift from accumulation to sale.
When whales move massive amounts of money to exchanges, it implies an intention to sell, active selling, or an increase in liquidity.
Impact on price charts
Large inflows to exchanges generally suggest potential selling intentions. This could indicate bearish sentiment among major holders looking to capitalize on the recent rally while anticipating a price decline.
However, despite the massive transfers from whales to exchanges, XRP charts have not reflected any negative impact.
On the contrary, the altcoin made moderate gains on the daily charts. At press time, XRP was trading at $2.33, marking a 5.03% increase on the daily charts after a 10.23% decline on the weekly charts.
This price recovery shows that despite the whale transfers, the XRP market remains bullish and the bulls are fighting to take over the market.
Source: CryptoQuant
AMBCrypto noticed this thanks to a sustained decline in the FX supply ratio over the past month. This suggests that while the whales are moving, a large portion of investors are keeping their assets off the exchanges.
Source: Santiment
This phenomenon among the largest portion of investors is evidenced by the fact that the exchange-to-flow balance of XRP has decreased to -334,000. When the flow balance is negative, it means that more assets are being withdrawn from exchanges than deposited.
This ends up reducing the supply available for trading, thus avoiding selling pressure.
Read XRP Price Forecast 2024-2025
Despite increasing whale flows to Binance, XRP investors remain optimistic and bulls are attempting to regain control of the market.
If the bulls outweigh the bears, XRP could reclaim the $2.6 levels and target $3. Conversely, if transfers to exchanges persist, causing panic selling, the altcoin will find support around $1.8. A break below will push it towards the critical support level of $1.5.
