XRP Price Rockets Past $1: On-Chain Data Unveils Key Holder Cohort Behind Breakout

by

As a seasoned crypto investor with a knack for deciphering market trends and a portfolio that has weathered numerous bull and bear cycles, I must admit, the recent XRP price surge to $1.26 is nothing short of exhilarating. After years of languishing below the $0.6 mark, this three-year high comes as a breath of fresh air.

As an analyst, I’ve observed a remarkable shift in the market dynamics that have propelled the XRP price beyond the psychologically important $1 threshold for the first time since 2021. This milestone, a significant leap from its usual trading range below $0.6 over the past three years, underscores an exciting turn of events in the XRP market.

The gathering, fueled by essential market movements and particular investor behavior, underscores the importance of strategic amassing by significant investors. Notably, data from the blockchain reveals a captivating pattern among large and medium-sized investors, as well as individual wallets.

XRP Price Breakout To $1.26: Whale And Shark Accumulation Driving Surge

The price of XRP surged to $1.26 on Binance, marking a level not attained since November 11, 2021, which represents a three-year peak. This significant increase coincides with a broader upturn in the cryptocurrency market, but the rise in XRP’s price is linked to strategic decisions made by its major shareholders and the expected change in leadership at the US Securities and Exchange Commission (SEC).

Based on data from the analytics platform Santiment, it appears that significant XRP holders, specifically those with 1 million to 100 million tokens, have played a key role in this recent surge. Interestingly, these large and semi-large XRP holders fall under the ‘sharks’ and ‘whales’ categories.

Over the past week, a combined total of 453.3 million XRP tokens have been amassed by large XRP holders, referred to as whales and sharks. This accumulation now accounts for approximately 18% of the entire supply of XRP. With the current average price of XRP, this acquisition is valued at roughly $526.3 million. The accumulation of XRP by these large-scale investors is not random; it typically indicates a bullish outlook and often predicts prolonged price rises. According to Santiment, such significant purchases by market players have historically signaled optimistic sentiments and usually precede periods of increased prices.

It’s noteworthy that while smaller investors (retail traders) are selling their XRP holdings worth around $87.9 million over the past week, larger investors (whales and sharks) have been buying them up. According to Santiment, these big players have accumulated 75.7 million XRP tokens during this period. In essence, the large-scale purchases by whales and sharks seem to be offsetting the potential negative impact of retail traders’ sell-offs.

What’s Next For XRP?

Due to a significant increase in value, XRP has overtaken Dogecoin in terms of market capitalization and reclaimed its spot as the sixth-largest digital asset. In just the last day, XRP’s price has climbed approximately 11%, while Dogecoin’s price has dropped around 7%.

As I write this, XRP has experienced a slight dip from its three-year peak of $1.26, now trading at $1.06. However, the overall sentiment among investors remains bullish, with significant players like sharks and whales aiming to maintain their hold above the $1 mark. This persistent hold could potentially stir up retail fear, uncertainty, and doubt (FUD), which in turn might catalyze further growth for XRP.

As per cryptocurrency expert Egrag Crypto’s analysis, it’s expected that the value of XRP will need to surpass $1.10 and finish the ongoing weekly chart with this level as its top for a bullish trend continuation.

Read More

2024-11-17 21:04