XRP Whales Move $814 Million, What Is Going On?

XRP price has recovered above the $0.50 support amid massive whale transfers from South Korea’s Bithumb exchange. In the past hour, over 1.6 billion XRP tokens, valued at approximately $814 million, were moved from the exchange to unknown wallets.

The unusually large withdrawals, which were flagged by Whale Alert, a platform that tracks large cryptocurrency transactions, have caught the attention of investors and fueled speculation about XRP’s future trajectory.

XRP Whales Move $814 Million

Whale Alert reports indicate that the transfers involved three separate transactions, with the largest one moving 586.09 million XRP, worth around $296.95 million, to a newly created wallet. The subsequent transfers, valued at $202.76 million and $314 million respectively, were similarly sent to addresses that were only recently activated.

The destination wallets are not associated with any known cryptocurrency exchanges, leading some investors to interpret this as a sign of accumulation by high-net-worth individuals or institutional investors.

According to crypto analysts, large transfers from exchanges to unknown wallets are often viewed as a bullish indicator. These transactions suggest that major holders, sometimes called “whales,” may be moving their assets to secure storage, which typically implies a long-term holding strategy rather than immediate selling pressure.

Bithumb’s Internal Transfers or Strategic Accumulation?

While some in the market speculated about the involvement of undisclosed buyers, some analysts have speculated that the transactions may be internal. According to XRPwallets, an account that monitors large XRP transactions, these movements maybe a part of Bithumb’s internal housekeeping.

The South Korean exchange has previously conducted similar transfers, often to reorganize its liquidity across different wallets.

However, the scale of the transfers has still led to heightened market interest, particularly as XRP’s price climbed to reach an intraday high of $0.52. Some analysts believe the perception of whale accumulation may drive positive momentum in the short term, even if the actual reason behind the transfers is operational.

Market Eyes U.S. Election and SEC Developments

The timing of these large XRP transfers coincides with broader market anticipation around the U.S. presidential election. Market analysts have noted that a potential change in administration could impact the regulatory landscape for Ripple Labs, the company behind XRP. As a result, the resolution of Ripple’s legal issues could provide a positive catalyst for XRP price.

A new Securities and Exchange Commissioner, appointed under a different administration, could alter the course of the ongoing SEC litigation against Ripple, which has weighed on XRP’s price performance over the past year.

Concurrently, Ripple’s third-quarter report highlights that institutional interest in XRP remains strong despite regulatory uncertainties. Moreover, companies like Bitwise, Canary, and 21Shares have filed for XRP ETFs, indicating sustained demand for the token.

Analysts Predict Potential Upside for XRP

Technical analysts have noted bullish patterns forming in XRP’s price charts, adding to the optimism around the token. Some believe that XRP may be positioned for a new rally, with one analyst identifying an inverse head-and-shoulders pattern on the four-hour chart.

This pattern, combined with indicators showing that XRP is currently in an oversold zone, has led some to forecast potential price targets of $0.5286, $0.60, and $0.66 in the near term.

Another popular crypto analyst, EGRAG CRYPTO, pointed to $1.10 as a critical “ignition stage” for XRP. He suggested that if XRP can achieve a weekly close above this level, it could lead to sustained upward momentum.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.