July 16, 2024
Binance


Cryptocurrency exchange giant Binance made a bit of a headline by transferring a substantial amount of XRP tokens—200 million to be exact. The massive amount of the transfer has made nearly everyone in the crypto community come up with guesses as XRP tallied notable 4% increase in value following the transfer, which added an extra layer of intrigue to the situation.

The recent struggles of XRP, reflected in its monthly losses and declining network fundamentals, have created an air of uncertainty around the coin. Santiment data analyzed by NewsBTC indicates a steady drop in daily active addresses and a decrease in the rate of new address creation over the past month. Additionally, XRP’s supply in profit has seen a sharp decline since the beginning of the year.

Source: Santiment

Whale Alert Detects Binance XRP Movement

Investors’ pessimism about the payment-linked cryptocurrency has been further accentuated by the lack of profitability, evident in the consistently negative Weighted Sentiment for XRP in 2024. As the crypto market evolves, these factors contribute to the dynamic landscape and impact the sentiments of investors and market participants.

One platform that tracks high-value transactions, Whale Alert, made the flow of XRP tokens visible. At around 6:40 am UTC, Binance started three different transactions totaling 64.41 million XRPs. Trade observers took notice of the subsequent large transfer of 200 million XRP to a “unknown wallet.”

The 200 million token transfer represents almost $105 million at the current XRP selling price, highlighting the importance of this operation. After more research, we discovered that the beneficiary address of the $200 million transfer quickly transferred $4.28 million in XRP to a different address.

XRP market cap currently at $29 billion. Chart: TradingView.com

XRP Price Trades Higher After Binance Transfer

The real intent of these moves is still unknown at this point. But the cryptocurrency community has been quick to conjecture, with conversations centered on the potential for whale buildup. The transfers’ timing, which coincided with an increase in XRP’s price, has fueled conjecture even more.

With a respectable rise in value today, XRP, which had been in a protracted downturn, saw some hope. Notably, it traded at $0.53, increasing in value over the previous day and week to 0.6% and 4.1%, respectively, according to Coingecko data.

It’s possible that the enthusiasm surrounding XRP’s positive turnaround spurred major market participants—also known as “whales”—to take big action.

Related Reading: Solana Surges: Open Interest Hits $1.75 Billion, Price Up 8% Today

Featured image from Freepik, chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.





Source link