XRP may be on the verge of a sell-off following a significant token transfer to cryptocurrency exchange Coinbase, likely intended for liquidation.
Specifically, approximately 27.1 million XRP, worth over $60.16 million, was moved from an unknown wallet to the exchange, according to on-chain data from Whale Alert on June 3,
Although no clear catalyst has emerged to justify the large-scale movement, historical trends show that such inflows to centralized exchanges often precede short-term price declines.
At the time of writing, XRP was trading at $2.26, up nearly 5% over the past 24 hours but down 3.5% for the week. The 14-day Relative Strength Index (RSI) sits at 44.92, in neutral territory but trending downward. Volatility remains moderate at 5.06%.
What next for XRP price?
Technically, XRP is hovering just below its 50-day simple moving average (SMA) of $2.29, signaling weakening short-term momentum. However, the 200-day SMA at $1.91 continues to provide a strong long-term support base.
Buyers must defend the key support zone between $2.14 and $2.00 to maintain bullish control, ideally with rising volume. A decisive break below this range, especially under heavy selling pressure, could pave the way for a deeper retracement toward $1.90.
Given prior instances where large transfers to exchanges preceded notable price drops, investors should remain cautious.
Although recent headlines have focused on the potential launch of spot XRP ETFs and the resolution of Ripple’s case with the SEC, there’s no indication this particular inflow is tied to bullish news.
Adding to the uncertainty, Ripple was involved in a June 1 transfer of over $1.3 billion worth of XRP.
While this deviated from the usual 1 billion XRP monthly unlock, the lack of a clear network catalyst could introduce additional volatility, especially as the asset continues to move in sync with broader market trends.
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