Whale Moves 40M XRP To Binance, Sparking Sell-Off Concerns

A massive transfer of 40,000,000 XRP, valued at $124.78 million, from an unknown wallet to Binance has drawn attention and raised concerns among market participants.

Whale transactions of this magnitude often lead to market volatility, sparking fears of a potential sell-off that could further pressure XRP’s price.

XRP Price Faces Pressure Amid Whale Activity

At the time of writing, XRP is trading at $3.10, which is 3.35% down in the last 24 hours.

Earlier in the day, the token soared to as high as $3.20 but fell back under pressure from selling that could have been sparked by the large whale transfer.

The trading volume within a single day increased by 73.32%, to $17.95 billion, showing that the market became more active.

But the negative price action indicates that more sellers were participating and sold XRP than buyers willing to buy the digital asset, therefore raising questions on the future of XRP in the market.

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Technical Analysis: Key Levels to Watch

XRP has created immediate support at $3.00 which is a psychological and technical level. If the price drops below $3.00 on the chart, the price might go low to test the $2.90 support level.

The first major hurdle for XRP is at the $3.20 level that had provided a strong selling pressure earlier. If XRP manages to break out above $3.20, it could open the path to the $3.30-$3.40 zone.

Market Sentiment and Analyst Predictions

Whale transaction in XRP brings volatility into the price prediction of XRP. Transactions to exchanges particularly Binance are suggestive of liquidations which would cause increased bear pressure.

Market actors are paying particular attention to whether XRP can hold above $3.00 or if the bears might push the price back down.

Industry experts have come up with divergent opinions. EGRAG CRYPTO, an XRP analyst, has noted that XRP may enter a ‘powerful energy field’ in the $4.40 – $5.00 zone and may further drive the price up.

But he asked investors to be careful because the token is famous for its sharp price drops.

Joining in the conversation, popular analyst Davinci Jeremie gave a positive and somewhat conservative perspective on the future of XRP. He tweeted,

“Well well well… XRP could reach $20 – $24, but it does not mean that everyone should invest in it for the long term. But do trade, just do not HOLD blindly.”

This is in correlation with the increasing attention to XRP but at the same time, it focuses on the potential problems that might occur with long-term investments, which is why the trader should pay more attention to short-term trades.

XRP Open Interest Analysis

Open interest information shows that the market dynamics are changing significantly when it comes to XRP.

Perpetual contracts dominate the other contracts with the total open interest for XRP currently at $2.9 billion.

But the last 24 hours have witnessed a decrease of 14.62% in open interest meaning the trading positions have come down.

The largest XRP open interest is with Bybit at $1.4 billion while Binance comes second with $1.2 billion.

Futures contracts also rose by 22.19% in open interest indicating more speculative trading activities in the market.

However, if the token can maintain its $3.00 support level and buying interest emerges, it may stabilize and attempt to recover.