Coinbase’s sharp supply drop is followed by a single-handed transfer streaming out $29M in XRP: what’s driving it?
Ripple’s native XRP coin has just revisited the price lows of early August, putting XRP’s price at a pivotal make-or-break point. Last month, the OG altcoin stumbled upon $2.79 before heading back above $3, hitting the $3.35 monthly peak twice in one week.
On Sunday, a 10 million XRP cash out, worth approximately $29 million at stamped transaction time, has sparked debate among crypto aficionados on X. What’s likely to be a massive crypto whale move, doesn’t necessarily mean a sell-off. Coinbase, the largest crypto exchange in the United States, has been infamous for reducing their XRP reserves while others top up.
What’s Behind This 10M XRP Move On Coinbase?
Judging from the crypto whale behavior-tracking technical devices like the Chaikin Money Flow (CMF), the stream is slightly on the selling side. At -.07 on the 4-hour charts, this implies market correction is not done and over with yet – Ripple coin slid by 1% in the latest 24-hour period and 5.5% over the past 7 days, says CoinGecko.
On the contrary, the 10 million XRP transfer on Coinbase could have been made by a whale expecting for an XRP price upswing, as holding XRP in self-custodial crypto wallets is seen as a hedge against unexpected price rises, sometimes leaving customers unable to withdraw maximum balances from centralized exchanges (CEXs).
On The Flipside
* Coinbase’s XRP reserves defy the broader trend with a 57% drop in a month, making Coinbase fall out of XRP’s TOP 10 rich list.
* Most other major crypto currency exchanges have been adding to their Ripple funds since Ripple’s $50 million settlement with the SEC.
Why This Matters
Notably, these multi-million outbound moves of XRP holdings from Coinbase signal a shift towards decentralized finance (DeFi) based crypto wallets. However, self-custodial crypto wallets rely solely on the holder’s accountability, which isn’t always compatible with the needs of entry-level crypto enthusiasts.
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