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American blockchain payments firm Ripple Labs Inc has made two XRP transfers that have stirred different theories as to what their potential purpose is. According to data insights from Whale Alert, the two transfers overnight featured one 75,000,000 XRP move worth $36,921,543.
While this first transfer was moved to an unknown wallet, another transfer of 30,000,000 XRP valued at $14,949,851 was also moved to Bitstamp exchange. This push to Bitstamp has been linked to two possible scenarios, including the potential to sell or as liquidity for the On-Demand Liquidity (ODL) platform that Bitstamp is a partner in.
Just before publishing, a massive sum of 409,776,402 XRP valued at $201,627,816 was moved from Bitvavo to an unknown wallet. These XRP in motion are sparking sell-off fears even though their real intentions remain unknown to the industry.
At the time of writing, XRP is, as expected, buckling under sell-off pressure, with the price pegged at $0.492, down 0.32% over the past 24 hours. While the downturn was perpetrated by the fake news surrounding BlackRock's spot Bitcoin ETF approval, the current XRP movements have also contributed to dampened sentiment across the board.
XRP revival
Some of the prior XRP transactions from Ripple Labs are well known, and considering the legal intricacies surrounding the digital currency, the likelihood of a sell-off remains low. This can notably help allay fears and stabilize the price of the asset moving forward.
The recurrent whale action surrounding XRP is also another positive trigger to watch in the bid to stabilize the coin's price. It is worth noting that Ripple typically releases XRP from escrow on a monthly basis, and as one of the top holders of the coin, related movements may be recorded from time to time.
This suggests its actions might be tied to its business operations and not necessarily a dumping off.
Alex Dovbnya
Valeria Blokhina
