Coinbase-Linked 35,122,576 XRP Move Sparks Reaction – Price Reversal or Crash Ahead?

• Massive XRP transfer to Coinbase sparks speculation about price movement.
• Coinbase’s shrinking XRP reserves raise questions over future market impact.
• BlackRock partnership could be behind Coinbase’s drastic XRP reserve reduction.

A significant transfer of 35,122,576 XRP, valued at approximately $99 million, has just moved to Coinbase, raising concerns among market observers about the possible impact on XRP’s price. Whale Alert tracked the transfer from an undisclosed wallet to the popular crypto exchange, drawing attention as it coincides with other notable XRP transactions at the start of September.

Whale Alert announced on September 1 that two giant transactions, comprising more than 494 million XRP worth more than 1.35 billion, were transferred between unknown wallets. Such buys and sells were included in a broader change in the supply of XRP, further complicated by Ripple unlocking 1 billion XRP in its escrow during the same time.

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As XRP has experienced an upsurge in its price, reaching $2.84, such massive transfers may be a sign of an imminent price fall. The added supply of XRP to exchanges such as Coinbase can be an indicator of a supply influx, which has the potential to put the value of the token under pressure.

A Shift in Coinbase’s XRP Holdings

Further adding to the uncertainty surrounding XRP’s future, Coinbase has seen a drastic reduction in its XRP reserves. Analytics account XRPwallets found that the exchange’s XRP holdings have fallen by more than half a billion coins, leaving Coinbase no longer among the top ten largest XRP holders but much further down the list.

By the beginning of July, Coinbase was the fifth-largest XRP reserve exchange in the world, with 780.13 million XRP. However, recent reports indicate that the exchange currently only has 199.473 million XRP, ranking it 10th in terms of XRP reserves.

Such a dramatic drop in holdings has raised concerns about Coinbase’s long-term strategy regarding XRP. Analysts guess that the collaboration between Coinbase and BlackRock might explain the move. The largest asset manager, BlackRock, recently partnered with Coinbase to provide institutional access to crypto on its Aladdin platform.

A large portion of the XRP that left the exchange could have been sent to institutional custody through this relationship, which may shift the market dynamics.

Market Impact and Outlook for XRP

As these large XRP movements continue to make waves in the market, the token’s price stability remains uncertain. With Coinbase’s role as a major XRP holder now in question and the recent regulatory developments around crypto trading, XRP’s future could be at a crossroads. The growing supply, alongside the volatility of these large transfers, could indicate either a price reversal or further downward pressure.

Traders and investors will be watching closely to see how the market reacts to these shifts. Whether XRP’s price continues its upward trajectory or experiences a downturn remains to be seen, but one thing is sure: the coming days will be pivotal for the future of the Ripple token.

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