The recent mass sale of the market may not only affect stocks and Bitcoin (BTC). Apparently, XRP whales are also looking for a fiduciary position, as a wallet recently moved 24.95 million tokens to a cryptocurrency exchange.
Who could this whale be?
A recent "whale" transaction reveals that a stretch of 25 million XRP tokens was sent today to Bitstamp. The coins moved only one day after Bitcoin experienced a massive sale that sent it to fall below $ 8,000.
– Whale Alert (@whale_alert) March 10, 2020
The origin of the XRP tokens, with a value of more than $ 5.2 million, is uncertain. The currency has been distributed to several of the first users and is still distributed as a reward to Ripple members. The biggest source of free coins is the Ripple guarantee deposit, which in March set aside 100 million XRP, returning the other 90% of the monthly tranche.
Looking at the wallet where this last stretch of XRP tokens comes from, we can see that it was activated by BitGo in August 2019, and has only had the native Ripple token. The wallet has sent XRP tokens to Bitstamp several times over the past year.
Bitstamp has become the center of movement of XRP whales
The Bitstamp exchange, based in the euro zone, is one of the most reliable markets, as well as being a source of reports for accurate pricing information. In this exchange, XRP has reported trading volumes exceeding $ 33 million, but the real liquidity is really closer to the $ 700,000 mark. This means that any attempt to throw coins quickly could lower the price.
However, Bitstamp activity is also a bullish factor for the Ripple-based token, which was largely forgotten during the prolonged bear market. Now, traders notice a change in currency influence, as Bitstamp has become an important market, replacing the missing demand for XRP in Korean stock exchanges.
#XRP trading volumes move to the top spot on the world’s longest-standing crypto exchange (@Bitstamp). Don’t expect an explosion, but apparently utility driven volumes are starting to move. pic.twitter.com/QnCekcvRFd
– TplusZero (@TplusZero) March 7, 2020
Subsequent research shows that high volumes of Bitstamp do not only mean trade. The exchange has a market based on fiat, which allows the direct liquidation of XRP. Reportedly, some of the funds are withdrawn from the market and do not re-enter the cryptocurrency market again.
#XRP #Ripple #McCaleb #Bcrash
It is also important to note that it seems that the profits are being cashed out directly through #Bitstamp and we found no evidence that any of it is being reinvested into the crypto market. #CryptoWhale https://t.co/i3x94BRCR4
– Sciclo🦎 (@ Sciclo1) March 9, 2020
XRP just tried recently and couldn't jump the $ 0.30 level. For a few weeks, the asset remained around $ 0.24, and now it sinks towards $ 0.21. Despite the temporary sale, there is hope that XRP will continue to offer a large-scale profit opportunity, and prices of $ 0.21 are a long-term buying opportunity.
Market goes down, everyone forgets everything they’ve learned about the #XRP.
These temporary prices don’t change the fundamentals.
– The Cryptic Poet (@ 1CrypticPoet) March 9, 2020
The market price of XRP remains within a range, although there are expectations of a long-term break.