XRP Surges 12% as Whales Make Massive Exchange Withdrawals
XRP, the native token of Ripple, has seen a significant price surge of 21% over the past week. This upward momentum comes as cryptocurrency whales, the market’s largest investors, have been making substantial withdrawals from exchanges.
Over the last 24 hours, the cryptocurrency transaction tracker Whale Alert has reported several large-scale XRP transfers. The most notable transaction involved 25,247,582 XRP (approximately $14.9 million) moving from Binance to an unknown wallet.
This transfer didn’t stand alone, as two more significant withdrawals followed shortly after. Combined, these movements resulted in a total outflow of $57.3 million from Binance.
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What Do These Whale Movements Mean for Traders?
Experts often interpret large-scale withdrawals from exchanges as a bullish signal. When investors transfer cryptocurrency to personal wallets, it usually indicates a long-term holding strategy. This behavior can potentially reduce selling pressure and support price growth.
However, not all recent whale activity points in the same direction. A transfer of 28,070,000 XRP, worth about $14.9 million, moved from an unknown wallet to Bitstamp.
This transaction could potentially signal preparation for a sale. Despite this inflow, the net movement remains heavily skewed towards withdrawals, maintaining an overall bullish outlook.
What’s Next for XRP?
In the middle of these whale movements, XRP’s price has responded positively. At the time of writing, XRP is trading at approximately $0.58, marking a 12% increase over the past seven days.
Additionally, technical analysis of the chart reveals a bullish trend forming. The 9-day Simple Moving Average (SMA) sits at 0.4895, which the price has now convincingly broken above. This crossover indicates a potential trend reversal and suggests that bullish momentum may be building. Moreover, adding to this positive outlook, the Relative Strength Index (RSI) has spiked to 74.59, entering overbought territory. While this high RSI reading suggests strong buying pressure, it also signals that a short-term pullback may be on the horizon.
Moreover, the XRP/USD pair has now decisively broken above the downtrend that had been in place since April, suggesting a potential trend reversal. Above all, if the price can maintain above the $0.5900 level, it could gain further, with the next major resistance likely around the $0.6500 mark.
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