The XRP community is abuzz following a significant whale transaction involving 257 million XRP coins, valued at approximately $706 million. This massive transfer has sparked considerable speculation regarding the intentions behind it and its potential impact on the cryptocurrency’s market price.
The transaction was initially highlighted by XRP influencer Xaif Crypto, who questioned whether this movement was part of a strategic play by a whale or merely an institutional operation. On-chain analysis revealed that the wallet associated with this hefty transfer belongs to the cryptocurrency exchange Kraken.
Interestingly, prior to the successful transfer of 257 million XRP, Kraken had attempted a similar transaction of the same volume, which ultimately failed. According to XRP Scan, the reason for the failure was that the exchange attempted to transfer more XRP than it had available, excluding the reserves it must maintain. Following this setback, Kraken successfully moved the 257 million coins to another one of its wallet addresses.
This transfer is likely aimed at fulfilling user demand, as it appears Kraken is moving funds from its cold wallet to its hot wallet for easier access. This event aligns with observed trends among XRP whales, who have been accumulating significant amounts of the token recently. Reports indicate that these prominent investors have gathered nearly $1 billion in XRP, a movement that is generally interpreted as bullish for the asset.
Crypto analyst Ali Martinez has noted the importance of maintaining the $2.74 support level for XRP, warning that failure to do so could lead the price to drop as low as $2.35. Conversely, holding above this critical threshold could pave the way for the altcoin to aim for the psychologically significant $3 mark.
In a recent analysis shared on the platform X, crypto analyst Egrag Crypto provided insights on XRP’s current price action, indicating that a close above $2.85 is vital, with $2.90 being an even more crucial marker. He highlighted that if XRP can close above a range of $3.077 to $3.13 with strong trading volume, it may unlock further upward movement.
Despite these bullish indicators, Egrag Crypto also pointed out inconsistencies in XRP’s candle closures above the $2.85 mark. Should the price hold well above this level, he predicts that XRP could surge toward $3.40, marking the beginning of a larger rally. This prediction suggests the potential for XRP to experience a substantial 200% increase if it successfully breaches the $3.40 resistance.
As of the latest updates, XRP is trading at approximately $2.83, reflecting a positive movement in the last 24 hours, according to data from CoinMarketCap.
