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XRP Price Unfazed by $70M Whale Transaction

XRP Price Unfazed by $70M Whale Transaction

Cryptocurrency

XRP has demonstrated resilience, climbing 3% in the last 24 hours, fueled by overall positive sentiment in the cryptocurrency market. This surge occurred despite a substantial whale transaction that sparked concerns of a potential sell-off.

Large XRP Transfer to Coinbase

On July 19, Whale Alert, a blockchain tracking service, detected a transfer of 20.5 million XRP—valued at over $70 million—from an unidentified wallet to Coinbase.

This transaction led to speculation that the whale might be preparing to realize profits following XRP's recent price increase. Transfers to centralized exchanges are often seen as indicators of impending selling pressure, particularly after price rallies.

However, XRP's price has remained stable, showing no signs of a downturn.

XRP Price Performance and Market Context

Data indicates that XRP briefly reached $3.54, extending its week-long rally to a 25% gain. This surge brings XRP closer to its all-time high of $3.84 recorded in 2018.

This rally mirrors a broader recovery in the crypto market, with the total market capitalization surpassing $4 trillion recently. Improved regulatory conditions in the U.S. have bolstered investor confidence, attracting more interest to the crypto sector.

Institutional Interest in XRP Futures

XRP is experiencing increased activity in derivatives markets.

CoinGlass data reveals that open interest in XRP perpetual futures has exceeded $11 billion, representing approximately 3.1 billion tokens in leveraged positions.

XRP Futures Open Interest
XRP Futures Open Interest. Source: CoinGlass

This milestone surpasses the previous high of $8 billion recorded in late January.

Typically, a rise in open interest alongside price appreciation indicates growing institutional involvement and confidence in the asset's future.

Key Players in the Futures Market

  • Bitget leads the futures market with over 20% of open positions, valued at $2.2 billion.
  • CME's futures also reflect increasing institutional interest, reaching a record high of $630 million.
XRP CME Futures Open Interest
XRP CME Futures Open Interest. Source: CoinGlass

This growth aligns XRP with other leading digital assets like Bitcoin and Ethereum, which have seen significant institutional interest in the derivatives space.

Factors Driving XRP's Strength

XRP's recent strength is attributed to:

  • Ripple's legal resolution with the SEC.
  • Key upgrades to the XRP Ledger.

These factors have positioned XRP for continued relevance in the evolving cryptocurrency market.

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