Summary
- CryptoQuant’s Darkfost said the three-month average of Binance XRP whale inflows fell to $61 million, the lowest level since 2021.
- Compared with last year, when XRP whale inflows to exchanges exceeded $450 million, the current decline in inflows is more pronounced.
- A decline in whales’ exchange inflows and trading volume is interpreted as a sign of reduced potential selling pressure, but demand strong enough to absorb that supply has yet to recover sufficiently.
Forecast Trend Report by Period
XRP whale investors may be accumulating the token as deposits to Binance, the world’s largest crypto exchange, have fallen to their lowest level since 2021.
CryptoQuant contributor Darkfost wrote on Aug. 15 that the three-month average of XRP inflows from whale investors to Binance had dropped to $61 million, the lowest level since 2021.
The slowdown is more striking compared with last year. A chart shared by Darkfost showed XRP whale inflows to exchanges exceeded $450 million last year.
A decline in whale deposits to exchanges is generally interpreted as a sign that potential selling pressure is easing.
Still, lower exchange inflows alone do not confirm whether whales are actually selling or where prices may head next, Darkfost said. He added that declining exchange inflows and trading volume across the broader market suggest selling pressure is being exhausted, but demand strong enough to absorb that supply has yet to recover sufficiently.
Uk Jin
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