XRP Ledger Liquidity Drain In Spotlight, Is XRP Price Breakout In View?

XRP is gaining attention in the crypto market, as massive amount of XRP was recently removed from the top South Korean exchange, Upbit, causing speculation regarding price breakout.

Epic $15B XRP Transfer from Upbit

The revival in the crypto market has triggered a new wave of purchases from large XRP investors and institutions.

As crypto analyst Steph revealed on X, over $15 billion worth of XRP recently left Upbit for an anonymous wallet.

At the current XRP price of $2.19, $15 billion equates to approximately 6.8 billion XRP, a substantial portion of Upbit’s reported reserve.

This move signals that whales or institutions are accumulating XRP, a sign of a possible price rally ahead.

It could also mean Upbit itself is moving funds to cold storage. Notably, such large accumulations are usually aimed at the long term HODL.

XRP has seen bullish sentiments recently. The price of XRP rose 9% after Ripple CTO David Schwartz confirmed that Arthur Britto, a mysterious co-founder of Ripple, posted on his X account.

Britto ended nearly 14 years of silence with a cryptic post, which the community viewed as a positive sign for XRP.

Furthermore, a top Dubai property developer joined the XRP Ledger (XRPL) through a strategic partnership with the CryptoTradingFund (CTF).

Also, developments regarding a potential XRP ETF have fueled speculation, possibly driving large holders to secure their XRP off exchanges.

Moreover, 200 million XRP coins were recently moved to an unknown wallet, complementing the trend of intense accumulations.

XRP Ledger Amendments and Implications for Valuation

Another major development in the Ripple ecosystem is the introduction of a major update for the XRPL, Version 2.5.0. The update adds new features and bug fixes to the XRP Ledger.

Some of Version 2.5.0’s unique features include TokenEscrow, Batch transaction, PermissionedDEX, and others.

TokenEscrow allows escrows to interact with trustline-based tokens (IOUs) and multi-purpose tokens (MPTs).

Batch allows users to group and execute transactions in a single step, simplifying complex dApp operations.

The new amendment also tightens security on the XRP Ledger. The protocol implemented features like Fixed pseudo-account ID calculation to ensure correct account address generation.

The protocol also resolved slow test performance issues on the macOS pipeline.

These improvements greatly relieve developers, exchanges, and ecosystem contributors.

If eventually approved, these amendments will expand the role of XRP in Decentralized Finance (DeFi).

As XRPL expands, adoption may also increase, leading to a higher valuation.

XRP Price Outlook

According to data from market aggregators, XRP price was changing hands for $2.19, up by 0.5% in the past 24 hours. This valuation follows days of extended drawdown in the crypto market.

However, the trading volume declined by more than 48% to $2.7 billion, suggesting a reduced market activity.

If XRP successfully breaks above $2.20 and flips it as support, the next resistance to anticipate is pegged at the $2.36 level.

However, if it fails to hold above $2.00, XRP could drop toward $1.75 or even lower. This scenario could play out faster if volume remains muted.

Market analysts have high hopes for XRP’s future trajectory. Some believe the coin could soon hit $3, while others think it could rally as high as $28.