One of the longest-standing cryptocurrency exchanges, Bitstamp, witnessed a significant amount of Ripple (XRP) tokens transferred by a whale investor. This event sparked intense speculation among the currency’s investors.
Massive Transfer in Ripple
According to Whale Alert, on February 4th, approximately 29 million XRP were moved from an unknown wallet to the trading platform. The transferred tokens were worth $14.5 million based on XRP’s market value at the time of writing. Generally, the transfer of a large portion of assets by wealthy investors or whales to exchanges triggers anxiety among market participants. This is because there is a dominant belief that the token could be sold in a way that would create downward pressure on its price.
Additionally, whales might also be changing wallets or exchanges, or they could be executing a large purchase. In the current scenario, it is difficult to measure the true intent behind the transfer. Whale transactions have significantly decreased since the unfortunate hacking last week, which resulted in the theft of over 200 million XRP tokens from accounts associated with the main company, Ripple Labs.
Current Data on Altcoin
Nevertheless, some whales try to sell the token in smaller amounts over a longer period to avoid attracting attention. Therefore, it is not possible to completely rule out the selling pressure. The sixth-largest cryptocurrency has not recovered from the blows caused by last week’s exploitation and has since lost 3.8% of its market value.
However, the price decline also reflected in XRP’s futures market. According to Coinglass, the number of short positions taken for the cryptocurrency exceeded the long positions at the time of writing. Despite the negatives, most traders were trying to acquire XRP. Furthermore, according to a review of Hyblock Capital data, the prevailing sense of greed in the market raised hopes for a price recovery.