The unpredictable nature of the cryptocurrency market persists, with XRP being no stranger to this volatility. Following an optimistic beginning in 2023, XRP’s price has mimicked the broader market downturn resulting from Bitcoin‘s adjustment. Amidst the pessimistic outlook, however, a distinct narrative emerges beneath the surface – one involving wealthy investors, referred to as “whales,” purchasing large quantities of XRP.
XRP Whales Accumulate Millions Despite Price Drop
In contrast to the significant drop in XRP‘s price since March, large XRP investors, or “whales,” have been actively purchasing more coins. Based on data from market intelligence platform Santiment, as reported by market analyst Ali Martinez, XRP addresses possessing between 10 million and 100 million coins have consistently increased their holdings starting from early April.
After XRP experienced a significant price decrease in mid-April, this incident sparked increased buying activity as larger investors seized the opportunity to acquire more at reduced costs, employing the well-known “buy-the-dip” approach.
The price of XRP decreased from $0.62 to $0.41, piquing the interest of crypto whales. Within a week, they have amassed approximately 31 million units of XRP.
— Ali (@ali_charts) April 23, 2024
In just the last week, these whales have acquired an impressive 30 million XRP tokens according to the data, adding up to a grand total of 6.75 billion units they now hold. This significant purchase suggests a possible change in attitude among these major investors, who remain undeterred by short-term price swings and could be placing wagers on XRP’s future potential.
Deeper Dive: Whale Activity Hints At Bullish Sentiment
The most recent findings indicate that the accummulation pattern started beforehand, as early as April 5th. It’s worth noting that this date aligns with the closing stages of a selling spell by these particular whales, during which they disposed of some of their assets.
Starting on April 5th, there’s been unstoppable purchasing activity, with large investors acquiring over 600 million XRP within two weeks. This substantial build-up indicates growing faith in XRP among these influential figures, possibly implying a positive perspective from them towards the cryptocurrency market.
An additional piece of evidence supporting this belief is the rising figure of XRP addresses holding over 1 million tokens, which has seen a significant increase. Referred to as “mid-tier whales,” these investors have been on the rise, with their numbers reaching almost a record high of 2,013 on Tuesday. The growing involvement of these and other large-scale investors lends credence to the theory that XRP’s current price may be underestimated.
The price of #XRP has jumped ahead of the #altcoin pack, jumping +6% and as high as $0.5687 today. The amount of wallets, 2,013, holding at least 1M $XRP has been surging over the past six weeks (rising 3.1%), and is within 1 wallet of the #AllTimeHigh.
— Santiment (@santimentfeed) April 22, 2024
XRP Outperforms Other Altcoins
In the meantime, Santiment revealed that XRP is leading other altcoins in terms of wallet size expansion. Specifically, there has been a 3% surge in the number of wallets containing one million or more coins during the past six weeks. This growth in substantial XRP holdings suggests that investor enthusiasm and trust towards XRP are on the rise.
Whale behavior in the financial markets can provide valuable insights into investor sentiment. But, it’s essential to remember that this isn’t the only factor influencing investment decisions. For instance, XRP whales’ recent buying frenzy is an intriguing development. It could be a sign of changing investor sentiment towards this coin and potentially mark a pivotal moment for its price trend.
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2024-04-24 09:22