XRP whale’s $76M dump fuels questions – What next?

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  • Binance’s reserves have risen by 34 million XRP, with this likely to be a potential sell-off signal
  • If XRP’s daily candle closes below $2.30, further downside towards $1.92 may be likely

In the midst of continuous turbulence within the digital currency sector, a prominent investor (known as a “whale”) has been seen offloading substantial quantities of XRP coins, sparking intense interest among cryptocurrency aficionados.

Whale offloads 30 million XRP 

On January 12th, as reported by the cryptocurrency transaction monitor Whale Alert, an influential investor (often referred to as a “crypto whale”) sold roughly 30.17 million XRP tokens, equivalent to around $76.34 million.

This large accumulation caused bearish trading behavior, causing an increase in short positions which ultimately resulted in a drop in prices as shown on the graphs. Meanwhile, despite this, the general market mood is still negative, with prominent assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) also experiencing price drops on their respective charts.

Uptick in Binance’s XRP reserves

Over the past two days, the recent market conditions haven’t just impacted one large player (whale), but information from the crypto data analyst CryptoQuant suggests that Binance’s holdings have experienced a substantial increase.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Based on the available information, it appears that Binance received approximately 34 million XRP, suggesting that large investors (whales) and long-term holders might have transferred their assets to the platform. This could be for two reasons: either they’re looking to sell some of their holdings or they intend to swap their tokens for other digital assets.

XRP price momentum following breakout

Consequently, this significant action among whales and investors was triggered as XRP surged beyond a bullish flag-and-pole price movement pattern, and neared a robust resistance point at approximately $2.56.

After that point, nonetheless, the cryptocurrency has dropped in the rankings, partially due to these large-scale transactions by the whales.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Currently, XRP is close to $2.42 per unit, having experienced a decrease of approximately 2.55% in the past day. Over this timeframe, a significant drop in value and an increase in exchange reserves have led to a 30% decrease in trading volume. This suggests that traders and investors may be feeling more anxious compared to recent days.

XRP price prediction

Looking at the recent fluctuations of XRP’s price, there’s a good chance it could decline by approximately 20% to reach the support level of around $1.92 over the next few days. This prediction is contingent on the daily candle closing under $2.30. If this doesn’t happen, the bearish trend may not materialize.

It’s important to mention that this drop in price is predicted to be short-lived. Additionally, the mood in the market could change following the inauguration of President-elect Donald Trump on January 20th.

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2025-01-13 18:15