In the past 24 hours, more than $151 million worth of XRP has been withdrawn from Binance, the world’s largest cryptocurrency exchange, according to on-chain data from CryptoQuant recorded on June 11.
Notably, just one day prior, XRP outflows stood at a modest $23 million. This sudden sixfold increase in withdrawals suggests a potential strategic move by XRP holders.
Typically, large-scale withdrawals from exchanges are seen as a bullish signal. When tokens are transferred into cold wallets, investors often intend to hold them for the medium to long term, thereby reducing the immediate supply available for trading. This diminished short-term selling pressure can sometimes pave the way for upward price momentum.
However, XRP’s price has yet to react significantly to this massive withdrawal. On June 11, XRP continued trading steadily around $2.31, maintaining its price level despite substantial outflows. Such price stability amid heavy withdrawals may reflect a quiet accumulation phase before a potential sharp price movement.
Exchange Outflows: A Signal from Seasoned Investors?
This withdrawal event once again highlights the importance of on-chain signals in assessing market sentiment. While large withdrawals don’t automatically translate into immediate price increases, they often mirror the strategies of experienced investors who are more focused on long-term trends rather than short-term fluctuations.
Exchange flows often serve as indicators of market buying and selling pressure: inflows to exchanges typically increase the risk of selling, while outflows may signal growing confidence in the asset’s long-term potential.
It remains too early to determine whether this recent XRP withdrawal marks the beginning of a sustained bullish trend or is simply a one-time occurrence. Nonetheless, this is valuable information for current and prospective XRP investors, enabling them to make more informed decisions based on concrete data.
At the same time, another positive development has emerged: VivoPower, a publicly traded company, has announced a partnership with blockchain network Flare. This collaboration will enable VivoPower to generate passive income from its XRP holdings, further highlighting XRP’s expanding role within the decentralized finance ecosystem.
