Millions of XRP tokens have been reportedly moved across wallets by a crypto whale who might be expecting a rebound in the price of the token.
XRP has not been in the best of shape lately as its price has been underperforming. However, recent observations from crypto analysts might suggest that the narrative is about to change.
Popular crypto analyst, Ali, on X (formerly Twitter), shared his thoughts with his 43k followers on the platform. According to him, XRP might be preparing for an upswing in the next one to four weeks as the TD Sequential indicator signals a buy on the XRP weekly chart.
The TD Sequential indicator is signaling a buy on the $XRP weekly chart, suggesting that #XRP is poised for an upswing lasting one to four weeks. pic.twitter.com/icw4CY86UW
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— Ali (@ali_charts) February 6, 2024
Standing on this, whales might already be taking advantage of the optimism and beginning to make their move by sending lumps of the token across wallets.
In a recent report from WhaleAlert – a blockchain transaction tracker, a transaction carrying 40 million XRP tokens was spotted moving from the Bybit exchange to an unknown crypto wallet.
Per the report, the total value of the tokens moved equaled $20,054,038 ($20 million) at the time of writing.
🚨 40,000,000 #XRP (20,054,038 USD) transferred from #Bybit to unknown wallethttps://t.co/TTCGzi8EMn
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— Whale Alert (@whale_alert) February 7, 2024
The exact reason behind the transfer is unknown, but the whale might be expecting a potential price upswing as indicated by Ali in his analysis. Also, the whale might be stacking up his holdings by taking advantage of the current cheap price before the price rally begins in a couple of weeks.
As an alternative, the whale might be moving their XRP tokens to cold storage, which would suggest that they want to hold onto them rather than sell them for a longer period.
XRP price reaction
The price of XRP has been recording little gains over the last day. According to Coinstats data, XRP is up by 0.43% in the last 24 hours. Significantly, XRP may experience a further price correction, dropping to the support level of $0.4744.
However, if the price rebounds from its current position, it might witness an upswing to the next major barrier at $0.568. This coincides with its daily SMA of 50.
XRP shifts to the position of the 7th largest cryptocurrency in the market with a 24-hour trading volume of $541,452,408 ($541 million) and a live market cap of $27,340,132,670 ($27.3 billion).
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.