After seeing a massive bloodbath that saw XRP plunge as low as $2.92 on August 1st, the price of XRP has retraced slightly above the $3 mark over the last hour. During this period, on-chain tracking platform Whale Alert has spotted a massive XRP withdrawal in what appears to be a buy activity from a large holder.
According to the data, an unknown XRP whale has withdrawn a massive 82,277,388 XRP worth $246,483,552 from the renowned cryptocurrency exchange Kraken on Aug 1st. This marks the first large XRP transaction carried out in August.
XRP whales buying?
Amid the distressing crypto market condition triggered by the massive bloodbath experienced over the last day, market participants appear to be expecting large transactions like this, as large token withdrawals from exchanges signal massive buying activities, refueling hopes among holders.
While the move signals a massive buy activity from a high-profile investor or an institutional holder, speculations suggest that the move might have had a direct impact on the price of the token, fueling its modest hourly resurgence.
Nonetheless, the data further revealed that the massive transfer was executed by an unknown wallet address in a single transaction, suggesting heightened interest in the future potential of the third-largest cryptocurrency by market capitalization.
What's next for XRP?
Although XRP's previous price history has seen the token struggle in the month of August for several years, investors are optimistic that its performance this August may be different, with positive market signals on the horizon.
Data from CryptoRank shows that XRP has scored an average monthly return of just 1.07% in August over the past decade, marking the worst-performing month in the price history of the token.
However, with over $240 million in XRP already purchased on the first day of the month, it appears that investors are willing to go hard on the token this month. While this signals a rapid reinvestment in the asset, it indicates strong confidence in XRP’s future performance. This suggests that the market sentiment is shifting back towards optimism.
While the launch of the XRP ETF is currently in view, there are possibilities that the U.S. SEC might approve the product soon, spurring the price of XRP to break major heights during the month.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team