XRP Whale Binance Deposits Skyrocket: Key Holders Preparing For Profit-Taking?
On-chain data shows that XRP whales have been making heavy inflows to Binance recently, which may not be ideal for the asset’s price.
XRP whales have made massive trades to Binance recently
As one analyst explained in CryptoQuant Qucktake postalXRP Whale to Exchange Trading Indicator Surges on Cryptocurrency Exchanges Binance recent.
Here “whale to exchange transactions” is an on-chain metric that tracks the total number of transfers from whale entities to wallets associated with a given centralized exchange.
whale Refers to the largest investor on the Internet, who has a certain influence on the market due to the huge number of shares he holds. Therefore, this group deserves attention. One way to monitor its movements is to trade on whale exchanges.
When the value of this indicator is high, it means that whales have made a lot of moves towards the platform. Since one of the main reasons investors use exchanges is for sale-related purposes, this trend could be a sign that large shareholders are looking to sell.
On the other hand, a lower metric could mean that this group is not interested in trading cryptocurrencies because they do not make many exchange-related transfers.
Now, below is a chart shared by quants showing the trend of the 7-day simple moving average (SMA) of Binance XRP whales to exchange trades over the past few years:
As the chart above shows, Binance’s 7-day SMA XRP whale trades recorded extreme value ahead of the latest price assembly surpassed the $3.3 mark.
The timing means these huge investors may have anticipated the run, so they moved in order to reposition themselves appropriately.
XRP has managed to stay near its highs so far, which means whales may not have triggered the sell-off just yet. However, it remains to be seen how long these investors will continue to hold on to their profits, especially if the cryptocurrency continues its recent sideways trend.
Ripple price
XRP has been one of the best performers among the largest cryptocurrencies by market capitalization over the past week, with its price rising by more than 38%. While the rally started off strong, it has cooled over the past few days as the asset has consolidated flat overall.
The chart below shows how asset prices have moved over the past month.
