Crypto whales are at it again, this time with a massive movement of Ripple (XRP) tokens to unknown wallets. According to media reports, an XRP whale moved a sizable 100 million XRP tokens to unknown wallets, sparking a wave of speculations and debates among crypto enthusiasts.
The crypto community was abuzz with possible aftershocks or a sizable XRP token movement. Many took to social media platforms, especially on X, to voice their concerns.
XRP Token Movement Worth $51.6M Raises Eyebrows
As mentioned above, crypto enthusiasts were vocal on social media platforms, trying to figure out the purposes behind the massive XRP token movement. They observed that the XRP token price is likely to take a hit due to the massive movement by an unknown XRP whale. Many others believed this XRP token movement would have a negative effect on the XRP price, and it might decline below $0.50 in the coming days.
Irrespective of what crypto enthusiasts had to say or speculate, crypto analysts believed the XRP token movement would have little to no effect on the XRP price. They viewed that the XRP price will likely explode in the coming days as Bitcoin is flirting with $71,000 levels.
Whale Alert Rings Alarm Bells
Whale Alert data suggested on Tuesday that an unknown XRP whale moved 100 million tokens worth $51.6 million to and from unknown crypto wallets. It stated in an X post that the impact of the whale movement was unknown since the transfer was made between two crypto wallets.
What Crypto Experts Have to Say?
While investors and traders were busy voicing their concerns, crypto analysts and experts took a more pragmatic view on the latest XRP token transfer between two wallets. They believed that the XRP whale’s sale of holdings wouldn’t impact the XRP price in the market.
They added that if the XRP token transfer was conducted as a prelude to a sale on a crypto exchange, it could further aggravate the ongoing XRP price woes. The XRP price was seen at $0.52, a 14.63% decline in the last month from $0.64 levels. It’s been moving in a narrow range during the last week or so, at around $0.51-$0.53.
XRP Ledger Witnesses Heightened Activity
The XRP token movement has sparked a fresh wave of speculation about XRP’s future price, especially in the wake of increased activity on the XRP Ledger (XRPL).
According to the latest available data, XRPL’s Automated Market Maker (AMM) and Decentralised Exchange (DEX) platforms have witnessed a major rise in activity. The data revealed that these platforms reported up to 40 times more activity last week than the corresponding week. Analysts believed that the unexpected increase could result in expanded decentralised trading with the XRPL ecosystem.
Crypto expert Blockchain Backer went to the extent of calling this rising activity an “explosion”. He stated, “#XRP AMM volume explosion. Daily volumes are 40X what they were a week ago.”
Engagement on XRPL’s decentralised exchange has been constantly on the rise ever since the launch of the Automated Market Maker. CryptoQuant data revealed that the decentralised exchange witnessed a sharp 17.6% increase in trading volume over the last month or so. That’s not all! Various AMM-based activities have also reportedly increased, including a 62.35% increase in AMMDeposit volumes and a 143.1% increase in AMMCreate transactions. Meanwhile, AMMVote also saw a surge of 65.22% in activity as a clear sign of increased governance participation from the XRP community.
The Final Thoughts
Amid a massive whale movement report, the XRP price is moving in a narrow range. As crypto analysts believe, the latest XRP token movement will have no major effect on the XRP price in the short view. However, if the transaction leads to an XRP selloff on an exchange, the XRP price will be scathed.
Meanwhile, the recent rise in activity on XRP Ledger’s decentralised trading and liquidity mechanisms has given rise to hopes of an XRP price rise in the coming weeks.
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