XRP whales are massively depositing assets on Binance. Between 20 million to 690 million tokens are being deposited daily. This exchange is currently the industry leader in XRP deposits.
Some analysts assume that the optimistic outlook for XRP ETF is driving this trend. Even though full approval may be months away, the progress is impacting the XRP market.
XRP Whales Moving to Binance
The cryptocurrency community is very optimistic about the XRP ETF. This is promoting some bullish behavior. New data presents Binance's XRP whale activity as a useful indicator for measuring market dynamics.
According to an analysis from the on-chain cryptocurrency platform CryptoQuant, Binance is currently the biggest beneficiary of XRP whale activity. These traders are not only betting on the market but moving it with a consistent pattern.
Nevertheless, XRP deposits continue, which could lead to a price decline:
"XRP whale deposits to Binance tend to represent an inflection point for XRP price. For example, the XRP price bottomed out between April 7-9 when XRP inflows surged from 120 million to 690 million. Similarly, XRP price found a local peak in early March when whale deposits increased from 70 million to 290 million XRP." – Julio Moreno, Research Head at CryptoQuant.
In early March, XRP whales showed unprecedented activity, which could indicate an upcoming distribution phase. This morning, new data shows these high-value traders purchased over 900 million XRP tokens in April.
XRP exchange trading volume is surging overall.
This increased activity could negatively impact XRP price, but might not be significant long-term. These traders can actually move the XRP market, which is part of their calculation.
While the XRP ETF has recently experienced some setbacks, the overall outlook remains optimistic.
Even if the ETF is approved, there are still concerns that market appeal might be limited. After all, Bitcoin ETFs currently occupy about 90% of that market segment.
Nevertheless, these whales are showing significantly optimistic sentiment about XRP's future.
