XRP has seen a significant move in the last 24 hours as whale addresses have transferred millions of XRP to crypto exchanges.
Crypto data tracker Whale Alert reports two such transactions, which equaled about 54.8 million XRP worth nearly $30 million.
According to data from Whale Alert, in a single transaction, 28,350,000 XRP worth $15,504,917 was transferred from an unknown wallet to Bitso. In another transaction, 26,500,000 XRP worth $14,482,350 was transferred from an unknown wallet to Bitstamp.
The activity of these XRP whales coincides with a critical moment for XRP’s price, which is currently testing a key support level at $0.53. The XRP price has been declining since attaining a high of $0.575 on Feb. 20. The token might be set to close its third consecutive day of losses if today closes in the red.
XRP has been trading in a range since its steady drop from a high of $0.7 in early December. The token is currently facing resistance from its moving averages, the 50-day and 200-day moving averages, as well as the $0.579 barrier, which constricts its price in the very near term.
One of the various reasons why tokens are moved to exchanges might be to sell, although there are other reasons such as for staking, rewards and others.
In a possible scenario, the whale transfers could indicate sell-off pressure, as large holders may be looking to exit their positions before a further decline. However, the amount of XRP shifted seems not to be negligible enough to impact the XRP price.
At the time of writing, XRP was down 1.73% in the last 24 hours to $0.535, mirroring the general market declines.
On the upside, a break and close above $0.57 might suggest that the correction might be drawing close to an end. XRP could then attempt a rally to $0.67. On the other hand, if declines persist, XRP could dip toward strong support at $0.46. The likelihood of consolidation beneath the $0.57 mark remains more likely.