XRP Whales Accumulate 26 Million Tokens as Exchange Reserves Drop, Signaling Potential Rally

Blockchain tracking service Whale Alert reported a major transfer of over 26 million XRP from the Binance exchange to an unknown wallet.

Blockchain tracking service Whale Alert highlighted a massive transfer of over 26 million XRP from the Binance exchange to an unidentified wallet. This transaction, valued at around $13.62 million, points towards the accumulation of XRP by large investors, likely for long-term holding.

The latest data from XRP Scan shows that XRP whales holding between 10 million and 100 million XRP experienced some fluctuation, while those holding over 1 billion XRP maintained a relatively stable percentage.

This stability among the largest holders aligns with the idea of long-term holding, as these whales do not appear to be offloading significant amounts.

When whales move cryptocurrencies from exchanges to private wallets, it often indicates their intention to hold onto the assets rather than sell them in the short term. Market analysts typically view this type of activity as a positive sign, as it can reduce selling pressure and potentially lead to price increases.

Also Read: XRP Ledger Transactions Drop 65.6% in Q2 2024

Is Declining Exchange Reserves Indicating For A Rally?

Notably, the exchange reserve is declining, coinciding with a brief price spike. This could indicate significant withdrawals by large holders, consistent with the reported whale activity.

The exchange reserve has seen a general decline over this period. This suggests that investors are increasingly moving their tokens off the exchange and into private wallets. This trend of declining exchange reserves indicates that investors are more inclined to hold tokens rather than sell them. It’s kind of a positive signal for future price stability and growth.

Coinciding with this whale activity, XRP’s price has seen an upturn. The token is currently trading at $0.5069, representing a substantial 14.13% increase in the last 24 hours. This surge comes as welcome news to token holders who have weathered recent market volatility.

Despite the broader crypto market experiencing a downturn earlier in the week, XRP has shown resilience. The asset has maintained a 16.57% gain over the past 30 days. It outperformed several other major cryptocurrencies, including Ethereum (ETH).

Also Read: Why is the XRP price up today?

What This Means for XRP’s Future

The combination of significant whale accumulation and strong price performance could signal growing confidence in XRP’s long-term prospects. As large investors move substantial amounts of token off exchanges, it may create a scenario of reduced supply on trading platforms, potentially driving up the price if demand remains steady or increases.

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