XRP is currently exhibiting an impressive rally during today’s trading session. The Ripple-backed cryptocurrency surged by over 14% between Wednesday and today to a peak of $2.58. This rally reverses a steep decline that occurred on Tuesday following President Trump’s tariff announcement on Monday.
Interestingly, data from on-chain sources suggest that the rally is fueled by increasing whale activities, as large investors accumulate massive XRP coins for the long term.
Meanwhile, a notable growing trend on Binance, the world’s largest crypto exchanger by trade volume, suggests that XRP could be headed for an unprecedented surge if it persists.
Also Read: XRP Ripe For Major Surge – Here is What Happened
Binance Records Significant Reduction in XRP Deposits
While the price of XRP suffered downward pressure earlier this week, smart investors seized the opportunity to amass XRP. According to on-chain data, investors moved significant amounts of XRP from Binance to external wallets.
Large transfers of cryptocurrency from centralized exchanges to cold storage are often interpreted as bullish because investors are moving the assets to a location where they would not be spent. Also, when notable sums of a crypto asset it removed from exchanges, it creates a sense of scarcity thereby inflating the price of the said coin in the short term.
Meanwhile, CryptoQuant, an on-chain insight provider, validated this theory as its recent data shows a clear reduction in XRP Binance deposits. According to CryptoQuant, XRP’s deposit on Binance fell from 2.9 billion on March 2 to 2.87 billion on March 5.
Source: CryptoQuant
The above chart shows that about 30 million XRP coins (worth over $500 million) were removed from Binance to external storage within 72 hours. The movement to long-term storage underscores investors’ growing confidence in XRP especially because of key updates surrounding the asset recently.
Continuous Whale Movement Could Boost XRP to $10
Meanwhile, the recent whale activity has raised speculations about XRP’s outlook. Analysts have suggested a $10 price breakout if the bullish sentiment continues. The transfer to long-term storage could exact a steady reduction in the circulating supply of XRP thereby creating grounds for more demand which could trigger its price to new heights.
Other factors that could catalyze XRP’s movement toward the $10 mark include the final introduction of a crypto reserve which includes XRP, and the approval of an XRP exchange-traded fund (ETF). Also, a favorable resolution in the long-running Ripple vs. SEC lawsuit could be another push toward this coveted level.
While the path toward $10 is still unraveling, XRP currently trades at $2.58, representing a 3.8% increase in the last 24 hours. What is more, its market cap was boosted by a 2.2% increase to $149 billion, positioning it as the third most valuable cryptocurrency after Bitcoin (BTC) and Ethereum (ETH).
Also Read: XRP Lawsuit Resolution Imminent? This SEC Update Ignites Hope
