thecryptobasic.com
Interaction with XRP has surged to a multi-month high as whales have moved large amounts of the asset to Binance in the past month.
The recent price surge of XRP has correlated with extensive whale activity among exchanges. Notably, the XRP Ledger native token has increased over 300% in the past month as investor traction towards the asset has reached insane levels.
Data from CryptoQuant shows that whales have shifted a substantial amount of XRP to Binance, signaling growing interaction with the asset. In a recent analysis, the on-chain analytical firm disclosed that whales have moved 2.66 billion XRP to the leading crypto exchange by market cap in the past 30 days.
Notably, this surging XRP interaction is the largest since April 2024. XRP flows of this magnitude were last seen when whales shifted 2.8 billion to exchanges.
Exchange Inflow Trigger
Meanwhile, CryptoQuant’s JJ Maartunn suggested that the massive inflows into Binance signal a growing XRP whale interest. However, it also stated it could be a change of strategy among whales.
The analyst stated that XRP whales seem to be switching allegiance, as they have a substantial amount of the asset at their disposal. He implied a possible sell-off amidst the massive XRP correction following the surge to a multi-year high of $2.9092.
Nonetheless, Binance is one of the largest holders of XRP. Data shows that just one Binance wallet stores 1.8 billion XRP ($4.26 billion), which is outheld only by the Ripple Escrow and Uphold addresses.
Incoming Dump?
Notably, data shows that the XRP exchange inflow spike precedes a substantial price correction. The CryptoQuant analysis shows a similar surge occurred in April and November 2022.
In November 2022, XRP corrected 12%, falling from $0.4640 to $0.4078. A similar scenario happened in April, with XRP seeing a more significant price correction. The altcoin depreciated 20.4%, falling from $0.6292 to $0.5110.
Meanwhile, the XRP ecosystem is oozing bullish momentum, which could hedge against a repeat of the historical bearish trend. For context, XRP bounced over 20% from under $2 yesterday to around $2.40 after the New York Department of Financial Services (NYDFS) approved the Ripple-USD (RLUSD) listing.
At the time of writing, XRP trades at $2.3366, up over 5% in the past 24 hours.