$XRP

XRP Price Could Drop 15% After 32 Million Tokens Flow to Exchanges

Since the beginning of the month, the price of Ripple (XRP) has fallen by around 18%, from $0.64 to $0.53. While investors may be hoping for a recovery, market sentiment remains fragile, suggesting that a recovery may not be imminent.

Instead, on-chain analysis reveals that the price of XRP may continue to face further declines. Here’s why.

Ripple Holders Count Their Losses

According to CryptoQuant, the price of XRP could drop below its current price due to increased inflows to exchanges. On October 9, the analytics platform’s data revealed that the number of tokens sent to exchanges had reached 32.36 million.

Exchange inflows track the number of tokens sent from external wallets to centralized platforms. In most cases, sending tokens to exchanges indicates that investors are not willing to hold on to the investment. If the flow to exchanges decreases, this would be a positive sign that could precede a price rally. Therefore, the flow of tokens indicates that a large sell-off may be imminent, putting downward pressure on the price of XRP.