The price of XRP has registered a significant decline during the past day as on-chain data shows that whales have been carrying out trading activities.
XRP Has Seen a Sharp Decline in the Last 24 Hours
The cryptocurrency sector has been witnessing bearish winds recently, as bearishness has been building across markets over the course of the past day. Most of the top coins, however, managed to limit their losses, with the exception of XRP, which underperformed significantly.
The chart below shows what the recent trajectory of the coin has looked like.
Following a 14% drop in the last 24 hours, XRP has dropped to $0.52. This drop also brought the stock down more than 21% compared to the $0.66 high it had seen a few days ago.
As for why the cryptocurrency has done this badly in the past day, perhaps on-chain data can provide a hint.
Whales Have Been Active on the Network Recently
According to data from cryptocurrency transaction tracker service Whale Alert, several large transactions have been observed on the XRP network in the past 24 hours.
All of these transactions take place at a level often associated with whales, which are large companies that can have some influence on the market.
Naturally, a single whale cannot move the market by itself, but a certain number of them together can, which is what happened today. Often, it can be difficult to tell for sure what the whales’ intentions are when they move, but address information can sometimes carry a hint or two.
Here are the first whale transfer details from the previous day:
As seen above, the whale moved 17,940,000 XRP, worth about 10.3 million dollars when the transfer was made, from an unknown wallet to an address connected to the cryptocurrency exchange Bitstamp.
An “anonymous wallet” is one that is not connected to any known centralized platform and may be an investor’s personal address. Therefore, it appears that the whale moved the coins from its storage bag to the exchange for this transaction.
Transfers of this type are called exchange income. Since one of the main reasons why investors invest their coins in these platforms is for purposes related to trading, a large influx of exchanges can lead to a bearish effect.
The other three XRP whale transactions from the previous day were also of the same nature, with whales changing $37.9 billion on different platforms. It is possible that these referrals were not for sale at all, but for the use of a different service that is usually offered by the exchange. Given the relative price trend, however, these moves are likely to provide net selling pressure to the cryptocurrency.