XRP Binance Inflows Spike: What It Means For Price

Name	Symbol	Market	Market Cap ($)	Algorithm
Cardano	ADAUSD	Crypto	27,991,003,594	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Cardano

ADAUSD

Crypto

27,991,003,594

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	0.0004	0.05%	0.7816	0.7814	0.7815

Price Change

Price Change %

Current Price

Bid Price

Offer

0.0004

0.05%

0.7816

0.7814

0.7815

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.7895	0.772	0.7807	0.7812	0.275966 - 1.33

High Price

Low Price

Open Price

Prev. Close

52 Week Range

0.7895

0.772

0.7807

0.7812

0.275966 - 1.33

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	11:27:25	6.78	0.7817	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

11:27:25

6.78

0.7817

USD

Price x Volume	Volume	Base Symbol	Related Pairs
7,645,092.83	9,802,807.06	ADA	ADAEUR	ADAGBP	ADABTC

Price x Volume

Volume

Base Symbol

Related Pairs

7,645,092.83

9,802,807.06

XRP Binance Inflows Spike: What It Means For Price

21/11/2024 2:00pm

NEWSBTC

On-chain data shows the XRP Binance Netflow has spiked to positive levels recently. Here’s what this could mean for the asset’s price. XRP Investors Have Been Depositing To Binance Recently As explained by an analyst in a CryptoQuant Quicktake post, a large amount of XRP deposit transactions have headed to Binance recently. The on-chain metric of relevance here is the “Exchange Netflow,” which keeps track of the net transfers going in or out of a given centralized exchange. The traditional form of this metric measures the difference between the inflow and outflow volume for the platform, but in the context of the current topic, a different version of the indicator is of interest: one that counts the net number of deposit/withdrawal transactions. When the value of the metric is positive, it means there are more inflow transfers happening for the exchange than outflow ones. As one of the main reasons why investors deposit to these platforms is for selling-related purposes, this kind of trend can be bearish for XRP. Related Reading: Cardano Outperforms Market With 50% Surge: Here’s Why On the other hand, the indicator being negative implies withdrawals are dominant on the exchange. Such a trend can be a sign that holders are interested in HODLing into the long term, which can naturally have bullish effects on the price. Now, here is a chart that shows the trend in the 30-day moving average (MA) of the XRP Exchange Netflow for Binance over the last couple of years: As is visible in the above graph, the XRP Exchange Netflow for Binance has mostly stayed inside the positive territory during the last two years, which suggests investors have constantly been making withdrawal transactions. Recently, however, the metric appears to have diverged from the norm, as its value has registered a sharp positive spike. The asset has seen a sharp rally of over 54% in the past week, so it’s possible that the traders making the deposits are looking to sell and realize their profits. Now, the main question is, is this selling a potential threat to XRP’s value? The indicator is sitting at 470 right now, which suggests significantly more inflows than outflows. Considering that this is also just the 30-day MA, the peak value is bound to be even higher. Related Reading: Bitcoin Is About To See A Historically-Profitable Crossover In This Metric While this high number of inflow transactions may look like a danger at first glance, it may actually not be so, since it corresponds to activity that’s mostly from the retail investors. Whales don’t tend to leave behind too many transactions, as they prefer to move large amounts with a single transaction. Thus, whenever this version of the Exchange Netflow spikes, it’s a sign that the small holders are depositing. Naturally, there could still be a few whale transfers among these inflows, which can indeed end up having a negative effect on the XRP price. It only remains to be seen, though, which of the scenarios holds true. XRP Price XRP has pulled ahead of the rest of the market with a sharp rally during the past week, which has taken its price to $1.09. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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