- Whale inflows hit record levels, sparking fears of price swings.
- Rising XRP transaction metrics point to heightened volatility ahead.
- Analysts warn pattern mirrors past pullbacks after massive wallet movements.
The XRP market was shaken earlier today after data revealed an alarming pattern in whale transaction activity. According to market analyst Steph Is Crypto, the XRP Ledger recorded one of its most significant whale-to-exchange inflows to Binance in recent history, triggering concerns over potential price swings.
Steph Is Crypto called it the “second-largest whale inflow in history,” asking if this should create worry among XRP investors.
New chart data reveals dramatic spikes in green bars, indicating the inflow of the whales. The numbers are close to those in January, when XRP momentarily surged past the $3 mark. This new development occurs as the token trades around $3.20, a price that has been a key resistance area on previous market cycles.
Source: Steph Is Crypto
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Rising Whale Inflows Signal Increased Volatility Risk
In response to the findings, XRP News | No Hype clarified that while the inflow is among the largest this year, it is not confirmed as the second biggest ever. They referred to a comparable occurrence in July when a pullback towards $3 followed a 660 million XRP inflow.
Analysts have also observed a concerning trend in the 30-day moving average of inflows, which has been increasing to 141 million and is now around 260 million. This continued increase indicates a growth in large transfers to exchanges, a measure that is usually associated with elevated volatility and instability.
Large inflows by whales to exchanges may be an indication of increasing sell pressure, especially when they are seen around major resistance areas. Nevertheless, it is essential to monitor net flows and post-transfer accumulation trends since not every significant movement leads to immediate selling.
Having the price of XRP placed at a delicate technical point, the inflows of whales combined with the presence of historical precedents are creating cautiousness in the market. These circumstances have, in the past, precipitated fast rises and falls in prices.
Conclusion
The consistent rise in whale inflows, combined with past instances of post-inflow price drops, is forming a pattern that analysts find concerning. Market watchers are now focused on exchange flow data to assess whether this trend will spark a correction or pave the way for XRP’s next decisive move.
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