There are growing signs of the Israel-Iran-US conflict escalating further as a drone strike hit the Saudi Aramco refinery in Ras Tanura. This comes at a time when oil prices are heading north with WTI Crude surging 9% on Monday, reaching $75. In the midst of the ongoing crisis, CryptoQuant contributor Darkfost shared data from Binance that the leading exchange has received more than 472 million XRP.
Traders have been sending their XRP to exchange platforms after the Israel-Iran tensions broke out. The large inflow is not unusual as the market reacts strongly during times of global crisis. Now, what’s risky here for the 472 million XRP being sent to Binance is that it’s worth $650 million. Traders usually send their tokens to exchange wallets when they intend to sell their holdings and jump ship or book profits.
“Such inflows typically reflect a more defensive posture from investors holding XRP,” wrote Darkfost. “When large amounts of tokens move onto exchanges, it often signals a potential willingness to sell or at least to position liquidity closer to the market.”
Also Read: XRP’s Institutional Adoption Could Push It To $8: Here’s Why
What Happens If $650 Million Worth of XRP Is Liquidated?
If $650 million worth of XRP is liquidated, the altcoin’s current price range of $1.35 could head south. However, the large-scale sell-off has not happened yet, but the risk of liquidity remains high. “When amounts of flows like this are recorded, they can create the conditions for a sudden wave of selling pressure capable of impacting price action in the short term,” he said.
Therefore, Ripple’s native token is now sitting on the fence that could slip and fall. Taking an entry position this week during the time of conflict is a risky affair. If the tensions cool down, the broader market, including XRP, could be on the safer side. Since Gulf countries are now being targeted by Iran, the chances of an escalation are higher.
