Bitcoin Bullish Signal as XRP Whale Withdraws $38 Million From Binance in the last few days
A large XRP transaction has been spotted on the Ripple blockchain in the last day, according to data from the crypto transaction tracker service Whale Alert. This transaction involved the transfer of 94,311,360 tokens, which were worth nearly $38 million at the time of the transaction.
Because the sum involved is so large, the sender of this transfer is most likely a whale or a group of multiple large investors. Because of their size, such transactions can have a significant impact on the market. The price response to any whale movement is determined by the exact intent behind the transfer. Whales make the transaction and may be found within the full details of this movement. Here they are: In the case of this XRP transfer, the sender was a wallet linked to the crypto exchange Binance, while the receiver was an unknown address, as shown above.
Such unidentified addresses are not associated with any known centralized platform and are thus most likely associated with personal wallets. Transfers like these, in which investors withdraw their coins from exchanges and deposit them in personal wallets, are referred to as “exchange outflows.” In general, holders keep their coins on exchanges so that they can sell them quickly at the desired price. When they intend to keep the coins for an extended period, they transfer them to offsite wallets. As a result, a large amount of exchange outflows can have a bullish effect on the price of the cryptocurrency.
In the case of the current transaction, it appears that the whale transferred these tokens out for possible accumulation purposes. And if that is the case, then the massive outflow can be beneficial to the value of XRP. The crypto has already been rallying in the last week or so (though not as sharply as Bitcoin or Ethereum), implying that the whale has made this accumulation move at a time when prices are relatively high. Typically, investors want to profit from opportunities like this one. Nonetheless, this massive holder’s decision not to do so now may be a sign of their continued confidence in the crypto’s prospects. XRP is currently trading around $0.386, up 9% in the last week.