- Investors sent 472 million XRP to the Binance crypto exchange last week.
- Traders believe large-scale investors may be preparing to sell their XRP tokens.
- Israel and the US attacked Iran over the weekend by launching heavy airstrikes.
Selling pressure intensified among XRP holders amid escalating geopolitical tensions between the US, Israel, and Iran. According to on-chain analyst Darkfost, 472 million XRP worth over $650 million flowed into Binance over the past week, suggesting investors may be positioning to liquidate their digital tokens.
Analyzing Investors’ Crypto Holding Habits
Typically, digital asset holders, particularly large-scale investors, store their tokens away from exchanges, keeping them in cold storage for security reasons. They usually transfer such tokens to exchanges, particularly centralized platforms, whenever they want to exchange them for other cryptos or fiat.
Crypto traders track these token movements to gauge market sentiment and potential price trends. The current trend suggests an impending surge in XRP volatility, as investors adopt a defensive approach amid the ongoing war in Iran.
Israel and the US Attack Iran
Israel and the US embarked on a full-blown war on Iran last Saturday, launching airstrikes that targeted military installations and the nation’s critical infrastructure. Tensions escalated with the news that Iran’s Supreme Leader, Ayatollah Ali Khamenei, had been killed during the initial airstrikes.
Iran retaliated with attacks targeting Israel and several Gulf Arab countries, which it believes supported the US by offering them operational bases within their borders. The retaliatory act deepened fears of broader regional instability, with the rising geopolitical risk weighing in on investor sentiment.
The War’s Effect on the Crypto Market
In the meantime, risk assets are taking a hit, including cryptocurrencies, with the crypto market’s total market cap dropping from a weekend high of $2.33 trillion to $2.24 trillion in the early hours of Monday. XRP, the fifth-ranked cryptocurrency by market cap, declined more than 6% during this period, with its market cap dropping from $87.49 billion to $82.41 billion, according to CoinMarketCap.
The analyst highlighted the growing influx of XRP into Binance, with investors transferring over 472 million XRP. He associated the latest pullback with this trend, predicting further pullbacks as investors’ sentiments reflect growing bearish pressure.
Related: What the US-Iran Conflict Means for XRP Price?
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