Data shows an XRP whale has made a massive withdrawal of $134 million from Binance, something that could prove to be bullish for the price of the crypto.
Whale Transfers $135 Million In XRP Out Of Crypto Exchange Binance
As per data from the crypto transaction tracker service Whale Alert, a huge XRP transfer was spotted earlier in the day.
The transaction amounted to a total of 350,000,000 XRP, and was worth around $134.8 million at the time of the transfer. At the current exchange rate, this stack of coins converts to about $130 million.
Such massive transactions usually belong to either a single whale, or an entity made up of multiple investors.
So, why was this large transfer done? Here’s some additional details about the transfer that may be revealing about the intent behind the transaction:
The complete details of the massive 350k coins transfer | Source: Whale Alert
As you can see above, the sender address in this case was a wallet belonging to the crypto exchange Binance.
The destination of the transfer was an unknown wallet. Such wallets are likely to be personal addresses, or at the very least aren’t part of any central exchange or other crypto platform.
This transaction is an example of an “exchange outflow,” since the XRP exited the exchange supply here. Similarly, the opposite type of transfer is called an “exchange inflow”
Generally, large inflows from whales are bearish for the price of the crypto since investors usually deposit to exchanges for selling purposes.
However, on the contrary, exchange outflows could suggest investors don’t want to sell anytime soon and are thus transferring the coins to hold onto them in personal wallets.
Such a large outflow like today’s could therefore imply the whale might have made the transaction to accumulate the crypto.
Though, in the current market environment where contagion due to the crypto exchange FTX’s collapse is spreading around, investors are more wary than ever about exchanges.
A large amount of holders have been taking the coins off to personal wallets, the keys to which they themselves own.
If the whale simply withdrew for this purpose, then the effect on XRP will likely be neutral from this. But, if the intention behind it was truly accumulation, then the crypto could see a bullish impact from it.
At the time of writing, XRP’s price floats around $0.36486, down 1% in the last week.
The value of the crypto seems to have observed some surge over the last couple of days | Source: XRPUSD on TradingView
Featured image from Kanchanara on Unsplash.com, chart from TradingView.com Read More