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25.24 million XRP quietly left exchanges over the weekend, with on-chain data from Santiment highlighting this fact in a tweet.
According to Santiment, 25.24 million XRP moved off exchanges between May 29 and 30. This piece of information was reflected in a chart posted alongside Santiment's tweet. The peculiarity of the move is that it occurred immediately after a major XRP inflow to exchanges, with over 22 million tokens shifted.
Santiment indicated that XRP saw its largest exchange inflow of the year on Thursday, with 22.80 million XRP added, but a major coin outflow quickly offset this. It noted that right after the largest XRP exchange inflow of the year occurred on Thursday, on-chain data indicates that even more coins have moved back off exchanges since.
22.8 million XRP were moved to exchanges on May 28 in a significant move as traders decided to sell at the bottom.
Santiment noted that the massive flow of coins to exchanges occurred right at the local bottom for XRP's price. This left many retail traders who decided to sell off at the lowest price in 15 weeks wishing they hadn't. XRP trading value is up a modest +5% since this capitulation day, Santiment noted.
XRP reversal imminent?
As reported, on-chain data indicated that the average XRP trader who has been active in the past 30 days is down about 47%, with many selling at the bottom. This follows as XRP's 30-day MVRV fell to its lowest level since December 2020, with fear and frustration among traders reaching rare extremes.
Before the capitulation by XRP traders, XRP's crowd sentiment reversed to negative and the ratio of positive to negative commentary fell to just 1.1 bullish comments for every 1 bearish comment.
The positivity in both scenarios is that these signals have usually preceded strong rebounds for XRP.
If this is the case, traders are watching for an imminent reversal in XRP price leading to a rebound. At the time of writing, XRP was down 0.33% in the last 24 hours to $1.33.
Ali, a crypto analyst, stated that he was watching the bottom of the rising channel at $1.34 as a potential buying zone for XRP. If this holds, XRP might target $1.37 and $1.40.
Dan Burgin
