The latest data from CryptoQuant sheds light on the fact that investors have pulled out 240 million XRP tokens from exchanges in the last three months. The withdrawal has reflected negatively in the charts, as Ripple’s native token fell to the $1 level in August. The data also shows that the amount of withdrawals has outnumbered the purchases, indicating weakness in XRP.
South Korea’s Upbit saw the highest number of withdrawals with 110 million tokens removed. Bithumb saw 30 million XRP tokens being withdrawn, and many more exchanges experienced the same. The relentless fall from $3.65 to $1 is among the reasons for the sell-offs. Holding on for the long term will only force traders to hoard the tokens against their will. A sell-off allows them the opportunity to invest in other assets, and make more out of it.
XRP had dipped below the $1 zone this week, touching a low of $0.97. However, it saw a rebound in value and is currently trading at $1.11 on Thursday. Despite the turnaround, Ripple’s native token remains at the crossroads of a major price change. The change is mostly downward and not upward. The withdrawal of 240 million XRP tokens stands in testament to the eroding confidence of the altcoin.
Also Read: XRP Could Be A Gem In The Next Bull Run: 2 Reasons To Hold
Will XRP Recover From Here?
A quick recovery is off the cards, as the market is more focused on AI technology. The industry has received an influx of investments from both retail and institutional clients. What once flowed into the cryptocurrency market is now diverted into AI stocks. The reason for the massive inflow is that the assets have been delivering constant gains. Even after a dip, the bounceback is much bigger, and this is what’s making traders confident about its prospects. XRP is currently unable to match these returns, which has led to a series of withdrawals from traders.
