Although XRP price has crashed below its crucial support level around $1 twice this week, on-chain data analysis shows XRP Ledger (XRPL) whales may have catalyzed the highest withdrawal rate from cryptocurrency exchanges since 2019.
The XRP daily withdrawal transaction percentage share (7D) from Binance exchange reached 56.85% on August 14, according to data from CryptoQuant analyzed by Finbold. At the same time, XRP’s daily withdrawal transaction percentage stake (7D) from all centralized exchanges (CEXs) surged to 54.9% on Friday.
Essentially, investors have been making higher withdrawals of XRP from Binance compared to other CEXs. Furthermore, this token’s deposit transaction share on Binance fell to its lowest level since 2019, at 43.13%, while across all crypto exchanges it has plunged to 45%.
The notable spike in withdrawals for XRP across all exchanges has coincided with a renewed demand from whale investors. Specifically, the large holders, which represent XRPL accounts with more than 1 million XRP, have surged in number to 2,038, as Finbold reported, and in holdings to 12.18 billion tokens, respectively.
Over the past 24 hours, XRPL whales bought more than 72 million tokens, according to metrics from Santiment analyzed by Ali Martinez.
What does it mean for XRP price?
The renewed demand for XRP has coincided with notable fear of potential price capitulation below $1, as Finbold explained. During the past 24 hours, its price has dropped 0.49%, trading at approximately $1, at the time of publication.
Additionally, its trading volume had fallen 14% on the day, hovering at about $863.7 million at the time of reporting. Consequently, if whales continue to accumulate more tokens, amid renewed exchanges’ withdrawals, the token’s selling pressure could significantly decline in the near future.
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