Interaction with XRP has risen to a multi-month high as whales have moved large amounts of assets to Binance over the past month.
The recent surge in XRP prices correlates with extensive whale activity on exchanges. Notably, Ledger’s native XRP token has increased by more than 300% last month as investor cravings for the asset reached insane levels.
Data from CryptoQuant shows that whales have moved a significant portion of XRP to Binance, signaling growing engagement with the asset. In a recent analysis, the online analytics firm reported that whales moved 2.66 billion XRP to the leading cryptocurrency exchange by market capitalization over the past 30 days.
It is noteworthy that this sharp increase XRP The interaction is the largest since April 2024. XRP flows of this magnitude were last seen when whales moved $2.8 billion into exchanges.
Exchange inflow trigger
Meanwhile, JJ Maartunn of CryptoQuant suggested that the massive influx of funds into Binance signals growing whale interest in XRP. However, he also stated that this could be a change in strategy among the whales.
The analyst said that XRP whales appear to be changing their allegiance as they hold a significant portion of the asset. He implied a possible sell-off amid a massive correction in XRP after jumping to a multi-year high of $2.9092.
However, Binance is one of the largest XRP holders. Data shows that only one Binance wallet shops 1.8 billion XRP ($4.26 billion), which is paid out to Ripple Escrow and Uphold addresses only.
Incoming dump?
Notably, the data shows that a surge in XRP inflows into the exchange precedes a significant price correction. CryptoQuant’s analysis shows that a similar surge occurred in April and November 2022.
In November 2022, XRP corrected by 12%, falling from $0.4640 to $0.4078. A similar scenario occurred in April, when the price of XRP changed more significantly. The altcoin depreciated by 20.4%, falling from $0.6292 to $0.5110.
Meanwhile, the XRP ecosystem is emitting bullish momentum that could hedge against a repeat of the historical bearish trend. For context, XRP jumped over 20% from under $2 yesterday to around $2.40 after the New York Department of Financial Services (NYDFS) report. approved Ripple-USD (RLUSD) listing.
At the time of writing, XRP is trading at $2.3366, up more than 5% in the last 24 hours.
