- Binance’s reserves have risen by 34 million XRP, with this likely to be a potential sell-off signal
- If XRP’s daily candle closes below $2.30, further downside towards $1.92 may be likely
Amid the ongoing struggles in the cryptocurrency market, a crypto whale was found dumping a significant amount of XRP tokens, attracting massive attention from crypto enthusiasts.
Whale offloads 30 million XRP
According to blockchain transaction tracker Whale Alert, a crypto whale dumped approximately 30.17 million XRP tokens, worth nearly $76.34 million, on 12 January.
This massive dump triggered bearish activity and led to the buildup of significant short positions, resulting in a price decline on the charts. However, the overall market sentiment remains weak, with major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) also falling on the price charts.
Uptick in Binance’s XRP reserves
The current market situation has not only affected a single whale, but data from on-chain analytics firm CryptoQuant revealed that Binance’s reserves have seen a significant hike over the last 48 hours.
Source: CryptoQuant
According to the data, Binance’s reserves grew by 34 million XRP, indicating that whales and long-term holders have moved their holdings to the exchange – Either to sell off or for token swapping.
XRP price momentum following breakout
However, this notable activity by whales and investors came on the back of XRP breaking out from a bullish flag-and-pole price action pattern, while also approaching a strong resistance level at $2.56.
Source: TradingView
Since then, however, the cryptocurrency has fallen on the charts, partly thanks to these whale activities.
At press time, XRP was trading near $2.42, following a price decline of over 2.55% in 24 hours. Over the same period, due to the recent dump and the hike in exchange reserves, its trading volume dropped by 30%. This can be interpreted to mean heightened fear among traders and investors, compared to previous days.
XRP price prediction
Based on the altcoin’s price action, XRP appears bearish on the shorter timeframe, with a strong possibility of dropping by 20% to hit the support level of $1.92 in the coming days. However, this bearish outlook will only hold if XRP’s daily candle closes below $2.30. Otherwise, it may fail.
Worth noting, however, that this price decline is expected to be temporary. And, market sentiment may shift after the inauguration of President-elect Donald Trump on 20 January.
