XRP Volume Rises 170% Even as Long Traders Endure Huge Losses

Ripple XRP

The surge in XRP trading volume suggests that investors are taking advantage of the volatility or positioning themselves for expected price movements in XRP.

According to CoinMarketCap data, XRP has seen a significant surge in trading volume, skyrocketing by 170% in the last 24 hours to reach $1.035 billion. This surge occurred despite a major market sell-off.

On Monday, cryptocurrencies fell deeper into a correction, with Bitcoin (BTC) dropping near $60,000 and altcoins experiencing even steeper declines. XRP’s price dropped by 2.32% in the last 24 hours to $0.4766 at press time as the broader market sold off. This sudden downturn triggered over $281 million in liquidations of leveraged trading positions across all digital assets, according to CoinGlass data.

The surge in XRP trading volume suggests that investors are taking advantage of the volatility or positioning themselves for expected price movements in XRP. Despite the overall bearish market sentiment, traders have flocked to XRP, driving up its trading volume.

XRP Volume Surge Despite Price Drop

Recent data from WhaleAlert, a popular tracker of large crypto transactions, identified three significant XRP transfers in the last 24 hours. Each of these transfers involved at least 26 million coins.

The first transfer moved exactly 30,820,000 (30.8 million) XRP from an unknown wallet to the Luxembourg-based exchange Bitstamp, valued at approximately $14.9 million. Further investigation revealed that the transaction was made by the well-known wallet ‘r4wf7…4Rzn,’ which frequently moves millions of XRP to Bitstamp and Bitso exchanges.

In the past few months, this whale has transferred large amounts of XRP to and from these exchanges. Some speculate that the whale is linked to Ripple, the company that issued XRP, while others believe it might be a large investor selling off holdings.

Following this, another transaction moved 26,234,427 XRP (worth $12.4 million) from Binance, the world’s largest cryptocurrency exchange by trade volume, to an unidentified wallet. Shortly after, the same whale transferred another 28,218,783 XRP (valued at $13.5 million) to another anonymous wallet.

Typically, when large amounts of cryptocurrencies are moved to an exchange, it is seen as a sell-off. Conversely, transfers from an exchange to a wallet are often viewed as accumulation, indicating confidence in the project’s future. While the reasons behind these transfers remain unknown, they have certainly caught the attention of market participants.