XRP faced strong selling pressure after reaching a three-year high of $1.26, amid profit-taking.
Binance data revealed that Ripple’s token lost a fifth of its value after hitting a three-month high, trading at $1.10 at the time of publication.
Whale Alert data shows that the Sunday decline in XRP is consistent with significant inflows of tens of millions of dollars into Binance and other exchanges.
Among these inflows, a whale transferred 10 million XRP tokens, valued at $113.3 million, to the Binance crypto exchange.
This transfer is likely part of the investor’s strategy to profit from their gains following XRP’s significant surge.
- These large XRP transfers to exchanges align with a noticeable shift in the distribution of XRP holdings, making their timing particularly significant.
- In particular, CryptoQuant data indicates a substantial rise in the amount of XRP available on exchanges.
- Exchanges’ XRP reserves increased by 44 million XRP in November, contributing to a more than 50% rise in XRP’s value during the same period.
This suggests that whale profit-taking may be behind the 13% decline from XRP’s 16-month highs.
Santiment also notes that retail traders have been selling into “any small XRP rally,” and the situation following the rally to $1.26 was no exception.
According to a November report from the on-chain data provider, “Wallets with less than 1 million XRP have collectively dumped 75.7 million tokens (worth $87.9 million) this past week.”
- A potentially bullish sign for the future is that whale and shark wallets, which hold between 1 million and 100 million tokens, absorbed the tokens that retail traders dumped.
- The CEO of Ripple Labs also mentioned that he was not surprised by the positive response from cryptocurrency markets following Trump’s victory on November 5.
- The main reason behind the crackdown on U.S. companies, according to Garlinghouse, was the animosity of Securities and Exchange Commission (SEC) Chairman Gary Gensler toward American-based crypto projects.
There’s significant support within the cryptocurrency industry for President-elect Trump’s pledge to fire Gary Gensler on his first day in office.
Gary Gensler was sued by 18 U.S. states, including Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, and others, in the aftermath of Trump’s victory. Gensler is accused of overregulating the cryptocurrency sector and violating states’ rights
