XRP’s on-chain activity shows a spike in large-value transfers, reaching a three-month high, indicating increased activity from major holders. This occurs against a backdrop of decreasing XRP balances on exchanges and rising interest in XRP relative to Bitcoin and Ethereum.
What to Know:
- XRP’s on-chain activity shows a spike in large-value transfers, reaching a three-month high, indicating increased activity from major holders.
- This occurs against a backdrop of decreasing XRP balances on exchanges and rising interest in XRP relative to Bitcoin and Ethereum.
- The combination of whale activity and exchange outflows could signal accumulation, potentially impacting XRP’s liquidity and price dynamics.
XRP is drawing increased attention as on-chain metrics signal a potential shift in market dynamics. Large-value transfers have spiked, suggesting renewed interest from major holders. This activity coincides with decreasing XRP reserves on exchanges, a trend that could influence liquidity and price action.
Whale Activity and Exchange Balances
Data from Santiment reveals a notable increase in whale-sized XRP transfers, climbing to levels not seen since October. The analytics firm suggests that heightened activity from large holders often precedes more volatile price movements. This on-chain behavior contrasts with the trend observed on exchanges.
CryptoQuant data indicates that XRP reserves on Binance have fallen to levels not seen since January 2024. The decline in exchange balances, from approximately 3.25 billion XRP, suggests a move towards self-custody among holders rather than an intention to sell.
Further analysis from Arab Chain highlights a decrease in whale flows to Binance since mid-December. While whales still constitute a significant portion of deposits to the exchange, the trend indicates potentially less immediate selling pressure from large players.
Market Perception and Price Analysis
XRP has recently been highlighted as a potentially attractive crypto trade, drawing interest from investors seeking higher percentage gains compared to Bitcoin and Ethereum, especially after the recent influx of capital into Bitcoin ETFs.
Despite a recent 6% drop, bringing the price to around $2.13, XRP has demonstrated resilience with significant gains over the past week and two weeks. The market is closely watching the $2.27 support level, with a sustained hold above this point considered crucial for maintaining bullish momentum.
Some analysts point to a potentially bullish setup in the XRP/BTC pairing, unseen since 2018, suggesting a possible shift in relative strength. The combination of rising whale transfers and decreasing exchange balances indicates a strategic positioning among investors, even as short-term price volatility remains a factor.
Conclusion
The confluence of increased whale activity and decreasing exchange balances suggests a possible accumulation phase for XRP. While short-term price swings are always possible, the underlying data indicates a strategic positioning by large holders, potentially setting the stage for future price appreciation.
Related: XRP Targets $23.7 as Accumulation Signals Go Time
Source: Original article
Quick Summary
XRP’s on-chain activity shows a spike in large-value transfers, reaching a three-month high, indicating increased activity from major holders. This occurs against a backdrop of decreasing XRP balances on exchanges and rising interest in XRP relative to Bitcoin and Ethereum.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
