XRP Whale Outflows Continue On Binance — What’s Happening?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. According to recent on-chain data, large investors in the XRP market seem to be adjusting their positions. Further analysis suggests that if XRP finds favorable alignment with the current conditions, it could be at the start of a larger upside rally. 44 Million XRP Leave Binance Late In February In a Quicktake post on CryptoQuant, market analyst Amr Taha shared that there have recently been major withdrawals of XRP tokens from Binance, the world’s largest cryptocurrency exchange by trading volume. This outflow trend is based on the Multi Exchanges Daily Whales Netflow metric. Related Reading Bitcoin May Hit $180,000 This Year, But Only If This Scenario Plays Out: Amber Data 13 hours ago For context, this metric monitors the daily net flows of XRP held by whale wallets across 15 major crypto exchanges (all of which Binance leads in trading volume). Positive readings from the metric indicate that XRP is moving into the exchanges; on the other hand, negative netflows signal an efflux of XRP from these exchanges. According to the analyst, there has been a significant increase in negative netflows from the Binance platform. This is also reflected in the chart shared below, where, as of February 27th, about 44 million XRP tokens flowed out of Binance’s whale wallet addresses. Source: CryptoQuant Interestingly, this event was not a one-off in the month of February, as roughly 30 million XRP had left these same wallets on the 6th of the month. What This Means For XRP Price Increasing netflows on exchanges is often a tell-tale sign of investors’ intention to sell off their holdings or exchange their coins, thereby adding bearish pressure to the market. So, when whale netflows lean towards the negative, it means there is less bearish intent among this investor cohort. Also, when two withdrawals of this magnitude happen within the same month, it is a clear suggestion that these large market players might actually be accumulating XRP in equally large amounts. It could also be a sign that, rather than accumulation, these large holders are locking up their tokens for long-term storage. Based on historical precedent, events like this are often bound to have positive effects on the price of an asset. In the event that netflows are significantly large, the analyst points out that there is a corresponding reduction in available XRP supply. This means there would be less XRP in the market than is currently being demanded by buyers. Demand exceeding supply is a typical economic situation that drives an asset’s price to the upside. It then becomes clear that if current demand levels persist or increase, the altcoin’s price would likely follow an upward trajectory. At the time of writing, XRP is valued at approximately $1.37, reflecting a 2.9% decline in the past day. Related Reading Analyst Shares Timeline For When A New Bitcoin Bull Run Will Begin This Year 1 day ago The price of XRP on the daily timeframe | Source: XRPUSDT chart on TradingView Featured image from iStock, chart from TradingView