Whale Alert: 95 Million XRP Moved To Binance, Prices to Dip?

The Ripple community has seen a significant transaction where 95 million XRP was sent to the Binance wallets. The on-chain data showed that an anonymous wallet sent the funds worth around $50 million for the transfer.

The transaction has reignited the debate on the effects of prices with XRP trading at $0.5229 at the time of the move.

Whale Movement Raises Concerns

The whale transaction was recorded early in the morning on Saturday at 04:48 UTC, as reported by Whale Alert. The sending address, referred to as rPz2. .. 4iNf, sent the XRP to a Binance-associated wallet, which led to speculations on market effects.

Based on the history of transactions between these addresses, there are signs of large value transfers, which may imply internal management of funds within Binance.

This is not the first time these wallets have been associated with large XRP transactions. On August 29, the same address transferred 60 million XRP, worth $39 million at the time, to Binance.

Likewise, on August 21, a transfer of 33 million XRP, equivalent to $19.81 million, was also observed between these two addresses.

Potential Impacts on XRP Price

Such large volume transfers are often associated with fluctuations in the market whereby the prices are affected. Nevertheless, the value of XRP increased by 1.55% within the first 24 hours after the transfer.

Whale activity, especially with addresses connected to Binance, may signal further strategic fund allocation. It may lead-up to more significant market movements too.

This transfer comes in the wake of a number of whale activities with XRP, which has only raised more questions price trends. Another single transaction was made on September 6, when 100 million XRP was transferred from Ripple to an unknown wallet with the value of $54 million.

These massive movements are making many people watch XRP’s price closely. More particularly with the legal issues that are still ongoing between Ripple and the U.S. Securities and Exchange Commission (SEC).

Ripple’s Legal Battle and Technical Analysis

Another factor that has kept XRP price unpredictable is the legal dispute between Ripple and the SEC. Ripple also sought to temporarily suspend a $125 million settlement payment as it waits for a decision on SEC’s appeal.

The delay has led to a period of volatility in the XRP market. Legal developments are expected to have a long term effect on the asset’s price. The SEC has until October 7, 2024, to decide whether or not to file the appeal, which leaves the XRP community in suspense.

Thus in the short term, XRP continues to face pressure and the key support levels are at $0.52. From the technical perspective, XRP has been indicating bearish signals in the current market scenario.

The price has been trading sideways, with the resistance levels being established at $0.65 and $0.75. These resistance levels have been hard to penetrate as selling pressure increases every time XRP gets close to these levels.

The Moving Average Convergence Divergence (MACD) indicator is also bearish as it is below the zero line and moving downwards in line with the bearish outlook. In addition, the Relative Strength Index (RSI) is sitting at 44 suggesting that sellers are slightly more dominant than buyers.

What Next

Therefore, these indicators point to a relatively conservative approach by traders given the current whale action in the market. If the price of XRP goes below $0.52, which is the current support level, then there might be further losses in the price of XRP.

However if the price crosses through $0.65 level, this may suggest a bullish turnaround, hence there is still potential for the bounce back. Furthermore, there is an inverse head and shoulders pattern on the weekly chart which signal a possible price rebound.

If the XRP price can break through the vital resistances at the $0.65-$0.66 level then, it may rally towards $0.90 or even $1.