Following the XRP price rally, whales have started liquidating their holdings at levels not seen since April 2024.
According to data from the firm CryptoQuant, large investors made deposits in the Binance exchange for 2.66 billion XRP, the equivalent of 6.48 billion dollars.
Cryptocurrency market analyst Maartunn explains that this is the highest amount of XRP “deposited by large holders since April 2024, showing a noticeable increase in activity among whales.”
As seen in the following graph, the blue bars reflect the volume of transfers to Binance by large investors of the Ripple currency, with a 30-day moving average (30MDA). The image also shows the three highest peaks and how the asset price has behaved during that period (blue line).
XRP whales move to Binance. Source: CryptoQuant
These movements generated downward pressure on the XRP price, which fell below the $2 line, as seen in the following chart.
XRP price over the past 7 days. Source: CoinMarketCap.
For the specialist, “whale deposits can often signal possible changes in strategy, as these players have significant amounts of assets at their disposal.”
The movement could be associated with possible massive sales, causing downward pressure on the asset price.
Optimism for the arrival of RLUSD
However, it is important to note that there is a bullish outlook for XRP due to the imminent launch of RLUSD, Ripple Labs' stablecoin.
The stablecoin, which has a 1:1 parity with the US dollar, was approved by the New York Department of Financial Services (NYDFS).
The news was confirmed by the firm's CEO, Brad Garlinghouse, who announced that RLUSD will soon be available on bitcoin (BTC) and cryptocurrency exchanges.
In addition to the milestone it represents for the company, it is worth noting that RLUSD operates on both Ethereum and XRP Ledger, which may increase demand for XRP, the native currency of that network.
The expectation is that RLUSD will increase the volume of transactions on XRP Ledger and, by extension, also increase the demand for the asset for the payment of commissions. This will generate upward pressure on the price of the currency.
