XRP could witness a massive selloff in the coming days, as shown by on-chain transfer data. According to transaction alerts from crypto whale tracker Whale Alerts, two whale-sized transactions involving XRP have recently made their way onto cryptocurrency exchanges Bitso and Bitstamp, prompting investors to ponder the reasons behind the transactions and speculate on possible outcomes.
Massive transfers by whales can often increase selling pressure if they sell and take profits, which could cascade into the price of the asset, even if only temporary.
Whale Transfers 50 Million XRP To Exchanges
XRP has gone through consolidation for the past two weeks in the midst of a market lull. According to Coinmarketcap, the altcoin’s trading volume is also down by 43.59% in the past 24 hours. Before this period however, a whale made a transfer of 50 million XRP worth approximately $31 million to exchanges, prompting investors to wonder if this is a part of the ongoing consolidation and if the transfers are a selloff.
According to Whale Alerts, a transfer of 25.2 million XRP tokens worth $15.66 million was made to crypto exchange Bitstamp on November 23. Shortly after, 25 million XRP tokens worth $15.55 million were sent to crypto exchange Bitso. Looking into the details of the two transactions on blockchain explorers reveal 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 address “r4wf7e” received 55.87 million tokens from address “rJgpQR” and then went on a spending spree in the hours after. 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 Moving XRP Now
The transfers into various exchanges have signaled that the whale intends to sell its holdings. However, there could be other reasons for the transfers, which could just be the whale wants to have their XRP readily available on the exchanges without even selling yet.
Of course, this is all speculation. There’s no way to know the whale’s exact intentions or how much token they plan to buy or sell, if any. But when amounts this large move onto exchanges, it often signals volatility ahead.
On the other hand, data from on-chain analytics platform has shown whales purchased 11 million tokens worth $6.82 million in the just concluded week. The buying spree suggests there could still be a bullish sentiment among some whales.
#Ripple | On-chain data shows that #XRP whales have purchased around 11 million $XRP over the past week, worth roughly $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 crossed over $0.7 again earlier this month but has struggled to continue this momentum. However, according to crypto analyst CryptoInsightUK, the token has a good chance of replicating the 61,000% gain it enjoyed back in 2017 before the SEC lawsuit.
Another analyst, Edward Farina, predicted Ripple has the potential to replace the current SWIFT system, at which point XRP could surge to $10,000.
Featured image from Pixabay
