In the past day, many large trades have taken place with Ripple’s native token XRP. The most recent transaction took place a few hours ago and impacted 43 million XRP tokens. Per Whale Alert, the tokens were moved from FTX to an unknown wallet, indicating that this was likely a buy transaction.
Furthermore, about 11 hours back, another similar buy transaction from Bitstamp regarding: 64.7 million tokens was made.
In the same time frame, parallel speculative sales of slightly higher cumulative value have taken place. 60 million XRP tokens were dumped to Bitstamp. And a few hours later, another transaction with the same number of tokens was executed by the same unknown wallet, but on Bitso.
The price of XRP has noticed a 6% increase in the past day. The same could mean that retail bulls have ridden on the hype wave and amassed Ripple’s original token.
Ripple’s Deposit is Unlocked
On the first day of each month, Ripple releases 1 billion XRP tokens from its escrow. In recent years, these releases have been made in two transactions, each with 500 million tokens. In and around the period mentioned, whale transactions – as described above – usually escalate. One possible reason could be that whales want to make speculative profits.
Dumps usually indicate a price dip. In the first few months of this year, as highlighted in a recent article, XRP has mostly made a profit on the 1st day. In June, however, the trend changed and Ripple’s original assets fell 5.6%, while on July 1, it lost 5.4% of its value.
On June 1, almost the entire market was in the red and July 1 and XRP just got carried away. The monthly releases alone do not have the potential to lower the price of XRP. And the asset’s performance on day one, from January to May this year, justifies the same.
XRP shares a high . at this stage correlation with Bitcoin [0.83] and Ethereum [0.86]. And with both coins currently nurturing their respective relief rallies, XRP can be expected to continue to last.
On-chain data supported the same. Ripple’s network activity has improved. For example, the number of active XRP addresses has risen sharply in the past day from 55k to 163.5k. The by-product of this was the increase in the number of transactions. Per Messari .’s datathis statistic rose from 1.1 million to 1.3 million in the past day.
So, given broader market sentiment, XRP’s dynamics with Bitcoin and Ethereum, and improving network activity, XRP can be expected to trade in the green in the next few trading sessions.