Whale Transactions on Coinbase Fueling XRP’s Price Surge, Data Suggests

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As a seasoned researcher with a decade of experience in the ever-evolving world of cryptocurrencies, I find myself intrigued by the recent surge in XRP prices. The 370% increase over the past month has been nothing short of astounding. The data from CryptoQuant, particularly the minute-level price premiums on Coinbase and the increased whale activity, hint at some heavy buying action that could be driving this trend.

Over the past month, the value of XRP has significantly increased, jumping from approximately $0.50 to a current price of around $2.4, which represents an increase of over 370%. This dramatic rise appears to have been driven by large investors (often referred to as ‘whales’) using Coinbase, a Nasdaq-listed cryptocurrency exchange.

As per Ki Young Ju, co-founder of CryptoQuant, the difference between the minute-by-minute prices of XRP on Coinbase over the past month varied from 3% to 13%, implying significant purchasing activity on the platform during that price surge.

In the meantime, Young Ju pointed out that Upbit, a well-known Korean cryptocurrency trading platform with more retail XRP investors than Binance, did not observe any substantial price difference.

According to recent reports, the level of whale activity involving XRP has reached an unprecedented peak following a significant surge in its value during the last month. As a result, XRP is now the third-largest cryptocurrency in terms of market capitalization.

The excellent performance of XRP over the past month can be attributed to several factors. Initially, the news of Donald Trump’s victory in the 2024 U.S. Presidential Election has fueled optimism for a government that is more supportive of cryptocurrencies.

There’s a lot of excitement among investors as they look forward to the departure of SEC Chairman Gary Gensler, scheduled for 20th January 2025. This could potentially result in a more welcoming regulatory climate for digital currencies like Bitcoin and Ethereum.

The cost of XRP increased following multiple applications to establish a trading platform for an XRP-based exchange-traded fund (ETF) within the nation, with the most recent entrant being WisdomTree. They join Bitwise, 21Shares, and Canary Capital in this competitive endeavor.

The Securities and Exchange Commission (SEC) has not approved a spot XRP exchange-traded fund (ETF) as of now, and it’s been engaged in a legal dispute with Ripple Labs, a significant player in the XRP market, since 2020. The SEC alleges that Ripple has raised $1.3 billion by selling XRP tokens, which they consider to be an unregistered security.

In simple terms, a notable court verdict was won by Ripple in July 2023 as Judge Analisa Torres decided that certain automated sales of XRP weren’t related to securities transactions. On the other hand, she concluded that direct sales to institutional investors were, indeed, instances of offering securities.

Information from CryptoQuant indicates that large XRP investors, or ‘whales,’ seem to be significantly influencing the price rise of XRP. Their level of activity has reached an unprecedented peak.

Of particular interest is that CryptoQuant analyst Woominkyu has highlighted the fact that large increases in XRP transactions between whales and exchanges, as observed recently, have often coincided with high points in the price of XRP. This recent spike suggests a possible price peak near $2.3, hinting that whales might be getting ready for profit-taking or increased market activity.

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2024-12-05 05:38