According to exchange data obtained on Tuesday, there is a clear divergence between XRP flows into Binance and Coinbase. While XRP whale outflows are shifting toward Binance, Coinbase is seeing a sharp drop in its share of XRP large-transfers.
Binance and Coinbase show contrasting XRP data
Data suggests that large XRP whale outflows are becoming more concentrated on Binance. This market signal is important, since it can reveal where larger holders – or whales – are becoming more active.
Binance’s share of XRP outflows where transactions involved more than 1 million coins climbed from 47 percent on June 1, to 52.9 percent as of Tuesday. Similarly, the 100,000 to 1 million XRP category also jumped from 20 percent to 27 percent.
If we consider the cumulative share of all transactions that had more than 100,000 XRP, Binance’s share climbed from around 47 percent to almost 80 percent. It shows that large transactions are now dominating most of the XRP value leaving the exchange.
In contrast, Coinbase’s share of above 1 million XRP outflow transactions tumbled from 31 percent to just 10 percent. In the same vein, the 100,000 to 1 million XRP outflow category fell from 27 percent to 16 percent during the period.
While the divergence or increasing delta in exchange withdrawals is in itself not a bullish indicator, it does show that XRP reserves on Binance are depleting at a far more rapid pace than earlier.
If Binance’s large outflow share remains elevated, it could become an important signal for XRP supply tightening on the exchange side.
Technicals support the XRP bull thesis
Besides the encouraging exchange data from Binance, technical patterns also support the XRP bull case. For instance, on May 26, XRP on-chain transactions repeated a pattern that had, in the past, preceded a 500 percent rally.
On June 2, despite its price pullback, XRP entered an accumulation zone that had previously triggered a massive 835 percent rally. A rally of similar magnitude now could skyrocket the coin all the way to $10.
That said, there is not a complete absence of bearish scenarios for the digital asset. On May 28, XRP broke down below the bearish pennant formation on the weekly chart, threatening a major price decline all the way down to $0.53.
