While it is nearly impossible to decipher a crypto whale’s intentions, some monthly cycles and global events can provide clues. As September began, whales moved tens of millions of XRP between unknown wallets, Bittrex, Binance, and even Ripple, breaking a relatively calm weekend stream of whale alerts. Is this a sign of a possible dump?
Notably, the transfers occurred between September 3rd and 4th. The whale warnings came at a time when several altcoins were on a tear. Altcoins such as Solana [+60.16 percent ], Litecoin [+27.44 percent ], Polkadot [+26.75 percent ], and XRP [+10.11 percent ] have rallied in the last seven days.
One of the smallest transfers involved Ripple sending 10 million XRP to an unknown wallet. Meanwhile, the largest transfer was 218,682,488 XRP (more than $280 million) to Ripple from an unknown wallet.
After several days of correction, the price of XRP was $1.25130 at the time of publication. However, XRP whales must consider more than just the overall price rally.
Observing Escrows and Whales
The performance of XRP has been linked to a variety of factors. Ripple’s escrow and the spending habits of former Ripple CTO Jed McCaleb are two of them. Ripple received 1 billion XRP from escrow on August 1. Ripple distributed 182.3 million coins to McCaleb as a result of this.
Ripple sent 174,862,720 XRP to Jed McCaleb’s “tacostand” crypto wallet on September 1, bringing the total balance to 709,911,470.83271 XRP. While the impact of McCaleb’s XRP inflows/outflows on the price of XRP is still being debated, this whale’s trades may inspire others to follow suit. However, “tacostand” has yet to make any significant outbound transfers this month.
Meanwhile, as the price of XRP rose alongside the price of other alt coins, more traders were regaining interest in it. Santiment, a behavior analysis platform, recorded 25942 active addresses on the XRP network in a 24-hour period on September 4th.
In comparison, on August 4th, there were only 11768 active addresses during the same time period.
Ripple v. United States Securities and Exchange Commission
Outside of the crypto sector, the XRP community has been paying close attention to the Securities and Exchange Commission v. Ripple lawsuit. September could be a pivotal month for XRP, as even minor court decisions could spark large-scale XRP dumps. For the time being, the unknown whales have moved over 380 million XRP in less than 12 hours.