XRP Price Drops 20% as Whale Movements Surge to Binance

A notable influx of Ripple’s XRP tokens by major investors into the Binance exchange during October has coincided with a sharp decline in the cryptocurrency’s value by 20%.

Data from the first half of October reveals that whale activity transitioned from a stable phase in September to aggressive deposits, exerting considerable selling pressure that drove the price down from $3.10 to $2.40 within days.

Whale Selling Sends XRP Tumbling From $3.1 to $2.4

CryptoQuant analyst Arab Chain indicated that the transaction volume peaked between October 10 and 12, correlating with XRP’s drop. This trend suggests that larger investors may be taking profits or securing their holdings following a volatile turnaround.

“This pattern is often interpreted as an indicator of whale-driven selling pressure, as increased flows to centralized exchanges typically reflect intentions to sell or take profits, especially when accompanied by a decline in price.”

The influx of XRP to exchanges marked a stark contrast to the quiet September, leading to intense price corrections due to whale actions. As inflows began to decline after October 11, XRP stabilized around $2.60, indicating that the intense liquidation phase was concluding.

Additionally, market commentator Ali Martinez reported on October 14 that whales had disposed of 2.23 billion XRP since October 10, a divestment valued at approximately $5.5 billion, reducing their overall holdings to 12% of XRP’s circulating supply. Such significant sell-offs from influential market players can create uneasiness for smaller investors, potentially resulting in an increase in market supply without a matching rise in demand.

Analysts Split as Technical Signals Flash Mixed Outlook

As of now, XRP has seen a 3% uptick in the past 24 hours, bringing the price to $2.52, although it remains 17% down over the last month according to CoinGecko data. This price drop comes despite a substantial 160% recovery from lows near $1.00 recorded on October 13.

However, discrepancies in price data have not gone unnoticed, with analyst EGRAG CRYPTO expressing concerns about inconsistencies on platforms like Binance and Coinbase, which could have exaggerated market volatility. Moving forward, he plans to depend on an aggregated “Crypto Data Set” which identifies $1.40 as a significant baseline for XRP’s long-term analysis while highlighting the need for the token to surpass $2.65 to regain upward momentum.