The XRP community’s attention has been drawn to a massive whale transaction involving 257 million coins. This has led to speculation about the reason for this transfer and whether it is bullish or bearish for the token’s price.
The XRP Transaction The Community is Talking About
XRP influencer Xaif Crypto first drew the community’s attention to this “massive” whale transfer of 257 million coins ($706 million). The influencer then questioned if it was a whale’s game or institutional play. On-chain data shows that the wallet address in question belongs to the crypto exchange Kraken.
Prior to the XRP transfer in question, Kraken had first attempted to transfer around the same amount, but the transaction failed. XRP Scan explained that the transaction failed because the crypto exchange was trying to send more XRP than it held, excluding its reserve. Meanwhile, Kraken sent the 257 million coins in question to another of its wallet addresses.
The crypto exchange likely made this XRP transfer to meet demand from its users, transferring the funds from its cold wallet to its hot wallet. Moreover, this transfer coincides with an accumulation trend among XRP whales. Bitcoinist reported that these whales have accumulated nearly $1 billion in XRP.
This accumulation trend is bullish for the XRP price and could serve as a catalyst as the altcoin looks to reclaim the psychological $3 level. This accumulation is also notable as these whales are providing support for XRP at a critical range. Crypto analyst Ali Martinez had warned that the token must hold the $2.74 support or risk dropping to as low as $2.35 if it loses this support. A successful hold above this range could pave the way to new highs for XRP.
Update On The Current Price Action
In an X post, crypto analyst Egrag Crypto provided an update on the current XRP price action. He stated that the altcoin needs to close above $2.85 and that closing above $2.90 is crucial. The analyst further remarked that the range between $3.077 and $3.13 is a key area and that a strong close above it with high volume could pave the way for the next move.
However, Egrag Crypto noted that there has been an inconsistency in candle closures above $2.85. As to where the XRP price could be headed next if it holds above this, the crypto analyst predicted that it could reach $3.40. The rally to this level could be the start of a larger move as Egrag Crypto indicated that XRP could rally 200% if it breaches $.340.
At the time of writing, the XRP price is trading at around $2.83, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
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