XRP Whales Are Depositing To Exchanges: Price To Drop Further?

2 months ago 23

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On-chain data shows the XRP whales have been making deposits to exchanges recently, something that could be bearish for the asset’s price.

XRP Whales Have Made Several Large Moves In The Past Day

According to data from the cryptocurrency transaction tracker service Whale Alert, several large moves have been spotted on the XRP network during the past day.

All of these moves are of a scale that may be associated with the whales, who are humongous entities on the blockchain that control a non-negligible part of the circulating supply.

Because of their large holdings, these investors can naturally carry some influence on the market, making their moves worth following. It’s usually hard to say what a whale intended to achieve with a transaction, however, as on-chain info carries a layer of privacy.

Nonetheless, depending on the type of addresses that are involved in the transfer, hints can sometimes be gathered. There have been three whale transfers with such identifying addresses in the last 24 hours.

Below are the details for the earliest of them.

Looks like this transaction only required a negligible fee of 0.000015 XRP to go through | Source: Whale Alert

As is visible above, this transfer involved the movement of 26.8 million XRP, worth around $15.3 million at the time that the move was executed. The sending address for the transaction was an unknown wallet, meaning that it wasn’t associated with any known centralized platform.

The receiver, on the other hand, was connected to one such platform: the cryptocurrency exchange Bitstamp. Transfers like this, which go from self-custodial wallets to an exchange, are known as exchange inflows.

Generally, investors deposit their coins to these platforms to make use of one of the services that they provide, which can include selling. As such, exchange inflows, especially of a large scale, can prove to be bearish for XRP.

The other two exchange-related whale transactions from the past day were similar to this one, in the fact that they were also exchange inflows. In the older of the two, the whale moved 19.4 million tokens ($11 million) to the Bitso exchange.

Interestingly, as the below details show, the sending address of this transfer is an exact match for the one from the Bitstamp inflow.

The second exchange inflow from the past day | Source: Whale Alert

This could suggest that the same whale may have been responsible for both of the deposits. The third exchange inflow from the last 24 hours was towards Binance, but this one had a unique sending address, so it may not be related to these other ones.

This one also happens to be the largest deposit of the three, as it saw 60 million XRP ($34.2 million) move into the wallets affiliated with the platform. Naturally, it’s not certain if these whales have made the inflows for selling, but in the scenario that it’s true, the asset’s price could take a hit from them.

There was also a fourth whale transaction on the network in this window, but the 92.1 million XRP ($52.1 million) move was made between two unknown wallets, so it’s impossible to comment on its purpose.