More than $151 million worth of XRP was withdrawn from Binance on June 11, according to on-chain data from CryptoQuant.
This dramatic jump in outflows follows a much smaller $23 million recorded the previous day, hinting at a sudden and strategic move by XRP holders.
Such a rise in exchange outflows is usually an indication of increasing confidence in the digital asset. When huge quantities of a token are withdrawn from exchanges, it is a sign that those holding it are not looking to sell at that time.
Rather, it is possible that they are accumulating their XRP in cold wallets, which is sometimes a precursor to holding for long periods. What stands out the most here is the scale and timing.
A sixfold increase in outflows within 24 hours rarely occurs without a cause. Although the real reason behind the move remains unverified, such action is normally observed before possible price increases, as traders attempt to anticipate what they believe will be a bullish momentum.
Although the movement was colossal, the price of XRP did not change much, as it continued trading at around $2.31. Such price stability in the face of massive outflows can be a sign of silent accumulation before a significant price change.
The XRP outflows indicate the actions of knowledgeable investors
This is a reminder to new investors to watch out for on-chain signals. A massive withdrawal does not necessarily imply a rise in price, but it usually reflects what knowledgeable investors are doing.
It’s also a reminder of the growing role that exchange activity plays in market analysis. Exchange inflows usually indicate selling pressure.
Outflows often suggest the opposite. That’s why traders who stay ahead look at more than just charts: they track where the money is moving.
It will be interesting to see whether this is the beginning of a long-term trend or a one-off occurrence. The transfer is a useful hint to those who own XRP or are planning to, enabling them to make informed decisions. While this transfer could mean nothing, it could also indicate that smart money is already on the move.
Earlier today, VivoPower, a publicly traded company, and blockchain network Flare announced a partnership to enable the former to earn passive income with its XRP holdings.
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