XRP Binance Inflows Rise: Price Impact

XRP Binance Netflow has increased lately, according to on-chain statistics. This may affect the asset's price.

XRP Investors Depositing to Binance

In a CryptoQuant Quicktake report, an analyst revealed that Binance has seen several XRP deposit transactions. The “Exchange Netflow,” which tracks net transfers in and out of a centralized exchange, is the relevant on-chain indicator.

This statistic traditionally measures the platform's inflow and outflow volume, however for this issue, it's more relevant to count the net number of deposit/withdrawal transactions.

When the measure is positive, the exchange has more inflow transactions than outflow ones. XRP may suffer from this trend since investors deposit to these platforms to sell.

However, a negative indication indicates exchange withdrawals dominate. This tendency may indicate long-term HODLing, which may boost the price.

The following graph shows that Binance's XRP Exchange Netflow has generally maintained positive for two years, indicating that investors have been withdrawing.

The metric's recent positive rise suggests it has deviated from the usual. The asset has rallied over 54% in the previous week, therefore traders making deposits may be eager to sell and profit.

The big question is: Could this selling hurt XRP? At 470, the metric indicates more inflows than outflows. As this is merely the 30-day MA, the peak value will be greater.

This large volume of inflow transactions may seem like a risk, but they're primarily from ordinary investors.

Whales want to transfer big sums with one transaction, hence they leave few transactions. A surge in this version of the Exchange Netflow indicates tiny holders depositing.

These inflows may still include whale transfers, which might hurt XRP. It's unclear which scenario is real.

Price of XRP

Over the last week, XRP has led the market with a rapid gain to $1.09.

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