XRP Whale Withdraws $135M From Binance• November 16, 2022 9:53 pm • Comments
Large transactions to and from major crypto exchanges like Binance could possibly indicate potential big moves that may soon happen in the crypto market.
Just recently, data is showing that an XRP whale has made a withdrawal worth around $134 million from Binance which could be a bullish signal for the price of XRP.
The transaction involved the transfer of a total of 350 million XRP and is likely to be a large institutional whale that is making a big position.
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The fact that the transaction was identified to be moving from a Binance exchange wallet to an unknown private wallet indicates exchange outflow.
Historically, this is bullish as it means that it is taking supply of XRP out of the exchange and thus increasing the price.
On the opposite hand, large inflows to a crypto exchange typically indicates a bearish signal.
Data shows an XRP whale has made a massive withdrawal of $134 million from Binance, something that could prove to be bullish for the…
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— Ƀitsell X (@BitsellX) November 17, 2022
This transaction is an example of an “exchange outflow,” since the XRP exited the exchange supply here. Similarly, the opposite type of transfer is called an “exchange inflow”.
Generally, large inflows from whales are bearish for the price of the crypto since investors usually deposit to exchanges for selling purposes.
However, on the contrary, exchange outflows could suggest investors don’t want to sell anytime soon and are thus transferring the coins to hold onto them in personal wallets.
Such a large outflow like today’s could therefore imply the whale might have made the transaction to accumulate the crypto.
Though, in the current market environment where contagion due to the crypto exchange FTX’s collapse is spreading around, investors are more wary than ever about exchanges.
A large amount of holders have been taking the coins off to personal wallets, the keys to which they themselves own.
Investors and speculators can analyze a variety of reasons for why such a large amount of XRP was taken out of the crypto exchange.
If the purpose of this is just to secure assets from being exposed to the risks of storing crypto on an exchange, then there will be no significant price impact on XRP.
However, if the purpose is for accumulation, then that would have a very bullish effect on the XRP market.
In both scenarios, the result is positive for XRP investors and indicates a good potential opportunity for new investors to get in.
Whale Transfers $135 Million In XRP Out Of Crypto Exchange Binancehttps://t.co/NEb0d02Fau
— heretic-x (@ggmania) November 16, 2022
If the whale simply withdrew for this purpose, then the effect on XRP will likely be neutral from this.
But, if the intention behind it was truly accumulation, then the crypto could see a bullish impact from it.
At the time of writing, XRP’s price floats around $0.36486, down 1% in the last week.
The value of the crypto seems to have observed some surge over the last couple of days.
— DTM (@DerekTMcKinney) November 16, 2022
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