The volatility on the broader crypto market remains a determining factor shaping both retail and whale activities. Over the past week, on-chain data shows that as many as 470 million XRP have been deposited on Binance.
XRP Sell-off in view?
XRP netflow remains a major trend that determines investor outlook. Precisely, the netflow from the XRP Ledger to Binance, per CryptoQuant data, comes in at $472 million.
As amplified by XRP proponent STEPH IS CRYPTO, this shows a bearish outlook as such deposits might be accompanied by some sell-offs.
The outlook was showcased in the coin’s price action in the short term. Over the past week, the XRP price has fallen by 1.08% to $1.36. This comes after a mild recovery for XRP as it has erased its more than 4% drawdown in the past 24 hours.
Sell-off concerns remain on the horizon as the negative trading volume suggests poor liquidity conditions. As of writing time, daily volume has dropped 25%, signaling limited engagement by retail investors.
Activities on the XRP Ledger have seen varied shifts in the past week. However, with active developer engagement, the projections are high that every negative trend, like the massive drawdown in XRP ETF flows in the past few days, will be upturned.
If the Binance deposits translate to sell-offs, the XRP price may retest the $1.30 support. However, with broader market strength, a bullish consolidation toward $1.50 cannot be ruled out.
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The optimism for XRP adoption by investors remains high as its integration on exchanges and platforms remains high.
Proponents believe XRP is on track to displace Ethereum as the second-largest digital currency by market capitalization. While maintaining its role as a bridge asset, developers are pushing for new amendments that will help enhance the role of XRP on DeFi protocols on the XRPL.