XRP whale activity on Binance has increased sharply. In fact, large XRP holders have moved around 1.6 billion tokens to Binance over the past 30 days.
According to CryptoQuant, this is the highest level seen in roughly six months.
Whales On The Move
The rise indicates that more XRP is being transferred by large wallets compared with previous months. Whale inflows had been falling steadily after March. The metric also reached low levels in May, June, and July. However, the trend started to change in August. In recent weeks, whale inflows have gained momentum.
The movement is important because XRP sent to an exchange becomes easier to trade. This can increase the amount of the crypto asset available in the market in the short term.
However, large transfers to Binance do not automatically mean whales are preparing to sell. This cohort of investors may move tokens to exchanges for several reasons. They could be preparing for trades, or they may also be managing liquidity or moving funds between wallets and exchanges.
XRP had a strong run last month. The token gained around 70% during its August 17-21 rally. The move came as large wallets increased in number. Santiment found 85 new wallets holding at least 1 million XRP just two days before the sharp move, which suggested stronger demand and reduced available supply. But the rally came to an end after the US Senate failed to advance the CLARITY Act. It was among the biggest losers this week after an 8% plunge on September 15th.
The token briefly neared $1.25 before stabilizing near $1.33.
Opportunity?
CasiTrades said XRP’s recent move below the 0.5 Fibonacci retracement invalidated the wave structure she was tracking. The setup had pointed to a possible final move toward $1.78. The asset now needs to reclaim and hold the macro 0.618 level at $1.65 to improve the outlook.
Until then, lower Fibonacci levels remain in play. The macro 0.786 level near $1.10 remains a significant area. The analyst said the level could act as a potential C-wave target. However, she also warned that XRP could fall toward $0.87 if selling pressure continues.
Even ChartNerd speculated that another drop remains on the cards. While short-term traders lose patience during this weakness, long-term holders may see the current price as an “opportunity.” Along similar lines, EGRAG CRYPTO said that XRP trading below $2 could be a “life-changing opportunity” for investors.
Source: CryptoPotato
