Such moves are often seen as a sign that these whales intend to hold their XRP for the long term, which can potentially support higher prices.
By Leon Okwatch
Edited by Julia Sakovich
Updated
3 mins read
Recent blockchain data indicates that large holders of XRP have withdrawn significant amounts of the cryptocurrency from exchanges. This activity suggests a bullish sentiment among these investors towards XRP’s future price prospects.
According to Whale Alert, which tracks major cryptocurrency transactions, several large movements of XRP have been observed over the past day. These transactions, involving substantial sums typically associated with major investors, show a trend toward transferring tokens into private wallets. Such moves are often seen as a sign that these whales intend to hold their XRP for the long term, which can potentially support higher prices.
One notable transaction involved the transfer of 38,783,752 XRP, valued at approximately $20.5 million, from Binance to an undisclosed wallet. Similar movements from Binance to unknown wallets were also observed in other large transactions totaling around $57.3 million in outflows from the exchange.
In contrast, a smaller transaction saw 28,070,000 XRP, worth $14.9 million, being deposited into the Bitstamp exchange. While deposits like these could indicate potential selling intentions, the overall trend of net outflows suggests a prevailing bullish sentiment among XRP whales.
XRP price has risen nearly 25% over the past week, currently trading at approximately $0.52. Analysts attribute part of this increase to significant accumulation by large holders, with data from Santiment indicating that whales accumulated approximately $300 million worth of XRP between July 12 and 15.
Analyst Armando Pantoja recently expressed his bullish outlook of XRP price, citing the tightening of Bollinger Bands, a feature that has historically preceded significant price moves.
🚀 $XRP is absolutely going to $20! The recent explosive breakout above the upper Bollinger Band confirms it. 🌕 With this kind of momentum, it's not a question of if, but when. Get ready for liftoff! #Crypto #XRP #Investing pic.twitter.com/8aAx2TFyYv
— Armando Pantoja (@_TallGuyTycoon) July 15, 2024
However, traders are advised to exercise caution as the Relative Strength Index (RSI) spiked above 83, signaling overbought conditions and potential for a price correction.
Ripple Labs, the company behind XRP, has been involved in a longstanding legal tussle with the US Securities and Exchange Commission (SEC). The SEC alleges that the coin, issued by Ripple Labs, qualifies as a security and should have been registered with the SEC before its distribution.
The legal battle has been ongoing since December 2020 when the SEC filed a lawsuit against Ripple Labs and its executives, alleging illegal securities offerings amounting to over $1.3 billion.
Recent developments indicate a potential breakthrough as the SEC has scheduled a closed-door meeting on July 18, 2024, to discuss possible settlements, litigation resolutions, and enforcement actions related to the XRP case. This meeting is crucial as it could provide clarity on the regulatory status of XRP and its implications for the broader cryptocurrency market.
Investors and analysts are closely watching these proceedings, as a favorable settlement could resolve the regulatory uncertainties that have clouded XRP’s market outlook for the past few years.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Leon is a seasoned blockchain writer and reporter, dedicated to uncovering the stories behind decentralized technologies. He excels in providing in-depth analysis and thought leadership in blockchain media. His reporting sparks meaningful conversations and fosters a deeper understanding of the transformative potential of blockchain.
