Ripple’s native token is currently facing a significant downturn as XRP whales are staying less active on the Binance exchange. Data from XRP Ledger (XRPL) indicates that large transfers to the exchange have fallen to their lowest level since 2021. Although this signals a reduced selling pressure, the XRP price is plummeting to a three-day low.
XRP Whale Activity Dries Up
According to the CryptoQuant analyst, Arab Chain, XRP whales’ activity on Binance has faced a drastic fall in recent days. In the latest analysis, CryptoQuant noted that the Whale Transfer Flow dipped to levels last seen in 2021. The figures fell to 48 million XRP before slightly recovering to 56.1 million.
Notably, the Whale Transfer Flow is a metric used to measure the number of tokens moved by major wallets to exchanges. It is often used to analyze the whale behaviour to know if they are preparing to sell the crypto.
When a large number of tokens are transferred to exchanges, it signals that whales are planning to sell them. This increased selling pressure could be a negative catalyst for the crypto price. On the other side, if the Whale Transfer Flow is low, it typically indicates reduced selling pressure, which is a positive indicator.
XRP Price Plummets Despite Reduced Selling Pressure
Significantly, this development coincided with the XRP price’s recent surge. This suggests that the XRP whales are interested in holding their tokens rather than selling. Typically, this investor sentiment can push the crypto prices up.
The whale activity had dipped to similar lows previously in 2021. It then led to a significant price rally. As the amount of XRP available on exchanges was limited, it triggered a surge in demand and resulted in a notable XRP price surge. Similarly, the latest trend also sparked fresh speculations of an uptick.
However, now the Ripple token is facing a downtrend. Despite reduced selling pressure and less availability on exchanges, the Ripple token is now trading in the red zone. As of press time, the XRP price is marked at $2.07, down by 1.45% in a day and 2.65% in a week. But it is still up by about 7% in a month.
This downward pull is mainly due to the broader crypto market’s negative trend. The crypto market has declined by 1.09% over the past 24 hours, reaching $3.23 trillion. Top assets, including Bitcoin, Ethereum, and Solana, are also mirroring this bearish trend.
Source: https://coingape.com/xrp-whale-inflows-on-binance-hit-2-year-low-ripple-token-price-slips/
