XRP’s price finally breaks out of procrastination mode, but why are market watchers in fear of a sell-off?
Crypto whales shuffled millions of Ripple (XRP) tokens on Sunday morning, waking up several blockchain whale tracking agencies with this unusual transfer. 26,896,993 XRP coins were flipped from a self-custodial crypto wallet to a Coinbase account.
Real Reason Behind Coinbase’s $57.7M XRP Flip
Surely, this has fueled immediate controversy, as usually deposits to Coinbase in bulk amounts lead to sell-offs. In this case, Ripple coin (XRP) successfully dodged a bullet, as the XRP sale on Coinbase didn’t have a long-term bearish impact on XRP’s price.
On the contrary, the popular remittance altcoin spurred to $2.26 on Monday afternoon, whipping up 4.7% gains in a few hours after consolidating around $2.15. To get a better understanding of further sell-off possibilities, DailyCoin’s research took a glance at XRP’s liquidity books.
As we can see in the graphic above, the daily bids on Ripple coin outscore XRP sales by $66 million, $365 million to $299 million. This bullish trend is solidified with a 24.69% uptick in 24 hour trading volume, favorable for XRP bulls to push the altcoin’s price back above $2.35.
Luckily for XRP coin holders, a sell-off isn’t likely if Ripple coin closes the day above $2.25, as Bitcoin’s latest bounce to $107K shifted the overall market sentiment back to enthusiastic. Even though the $57.7 million transfer was significant in volume, it turned out to be a simple maintenance move between Coinbase’s on-chain hot wallets.
Additionally, the largest players, popularly referred to as crypto whales, are dipping their tails back into XRP. That’s portrayed in the ultra-high Chaikin Money Flow (CMF) metric, flashing above 0.30. With today’s 5% upswing, Ripple’s native crypto erased the weekly deficit, but is still 4% down in a monthly timeframe.
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