Simply put
- Data from Cryptoquant indicates that big XRP investors are increasingly moving their funds to exchanges.
- Julio Moreno, head of Cryptoquant Research, suggests this trend may signal a potential price change.
- XRP values dropped following a surge of large transfers in July.
XRP prices could encounter short-term challenges as major holders transfer more funds to exchanges.
“A sudden influx of whale activity into exchanges might suggest a price shift, as these large holders may begin selling,” he mentioned.
As per Cryptoquant, the 30-day moving average for whale exchanges jumped from 141 million to 260 million in late July. This shift was initially pointed out by the analyst, Enigma Trader.
Moreno noted that whale activities can significantly influence market sentiment, highlighting that XRP prices fell in July after a similar whale influx.
On Thursday, XRP climbed by 9.7% to $3.29, according to data from Coingecko. Last month, it peaked at $3.65.
On July 18, XRP whales transferred 660 million tokens to exchanges, leading to a price drop to $3 the following week.
While the rising movement of XRP to exchanges may seem negative, Moreno argues that this trend is complex, with various outcomes possible.
He pointed out that in the past, XRP prices surged after a lower reserve of tokens in exchanges, particularly at Upbit, which is the largest XRP exchange.
Before XRP reached a new peak recently, Ripple co-founder Chris Larsen moved 50 million XRP, with an estimated value of around $140 million being transferred.
The recent crypto rally has also motivated whales from other digital currencies, including Bitcoin. Last month, Galaxy Digital, an institutional crypto firm, reported orchestrating a $9 billion Bitcoin sale for an early investor from the Satoshi era.
