A newly created address recently withdrew a large sum of XRP from Binance, leading to speculations of an imminent price reaction from the cryptocurrency.
In a relatively nascent market such as crypto, whale transactions significantly determine price action both on the short and long-term horizon. At the same time, large withdrawals from cryptocurrency exchanges are typically an indicator of increased demand for an asset or a pointer towards imminent price action.
XRP recently recorded one such large withdrawal. An address activated in the past week (Dec 21) has received 300 million XRP (approximately $186 million) in a withdrawal from leading crypto exchange Binance.
This withdrawal has caught the eye for several reasons. For one thing, the address moved a portion of the Binance-sourced funds to a new address 20 minutes after the initial withdrawal. Precisely, the address transferred 139.3 million XRP ($86 million) to another wallet created on the same day.
While both funds remain at their respective addresses at the time of writing, their next movement cannot be accurately predicted. The ideal outcome for XRP holders is that the fund remains idle and does not potentially head to another exchange for liquidation.
Meanwhile, being withdrawn from Binance, a fairly reputable crypto exchange, suggests that a sale is less likely. Instead, the withdrawal and subsequent transfer to a new address may simply represent a withdrawal by a large XRP investor to a self-custodial wallet and a subsequent shuffling of funds.
Another possibility is that the large holder is moving away from Binance to trade on another exchange. Recall that Binance’s XRP holdings dropped by 1.14% in the past month following regulatory pressure and declining liquidity.
XRP Price Comes Under Scrutiny
It is unknown at this point if the large Binance withdrawal would impact the price of XRP. However, the sixth-largest cryptocurrency has failed to impress since hitting a high of $0.69 earlier in December.
In the past 24 hours, XRP has seen a 2% decline, trading around $0.623 at the time of writing. Holders remain hopeful that Ripple will not liquidate its spendable XRP balance for the month. As previously reported by The Crypto Basic, the company still holds a liquid supply of 96 million XRP (approximately $59 million) in its main spending wallet.
