Comparison of XRP price and Binance Exchange deposit | Source: CryptoQuant
Looking at the chart above, Binance traders have a total of 3.034 billion XRP on the exchange as of October 13th. However, as the price began to fall following a last-minute SEC appeal in mid-October, Binance traders began creating larger amounts of XRP. Deposit into your trading wallet.
According to the latest data from CryptoQuant, deposits now exceed 3.113 billion XRP, equivalent to $1.6 billion as of October 25th, the highest level since the beginning of the month. Additionally, this also reflects that traders deposited 79 million XRP (approximately $40 million) into Binance wallets in the past 14 days.
Typically, when an investor transfers assets to an exchange, it indicates an intent to sell. Therefore, an increase in foreign exchange deposits indicates increased selling pressure and the possibility of lower prices.
Given that XRP lags broader market trends, this $40 million in forex inflows suggests that traders are likely to increasingly dump their holdings and take aim at better-performing assets. I am.
XRP Price Prediction: $0.50 Breakdown Risk Increases
XRP price has fallen 7% in the weekly frame and is trading around $0.52 at the time of writing on October 25th. However, the trend of XRP deposits to Binance exceeding the peak of $1.6 billion on a monthly basis suggests that downside volatility will increase further.
Technical indicators also confirm that XRP price may be on the brink of falling below $0.50 within the next few days.
First, the parabolic SAR indicator validates this bearish outlook as the dot is positioned above the current XRP price, which is a typical indication that sellers are still in control. It’s a signal. If XRP loses the $0.50 support as expected, the next potential bearish target could be $0.48.
