As the cryptocurrency market recovers and gains momentum once more, XRP has experienced a surge in optimism among investors. This renewed enthusiasm has led to an increase in demand for the altcoin, causing a significant group of XRP holders to reach new record-breaking ownership levels.
Wallets Holding More Than 1 Million XRP Nears ATH
In the past 12 months, XRP investors have seen extensive selling due to the coin’s persistent price difficulties. Remarkably, this unfavorable trend persisted even after Ripple achieved several partial successes in their legal battles against the US Securities and Exchange Commission (SEC). Consequently, many investors chose to withdraw their investments.
A significant group of XRP holders who have recently sold large quantities of tokens are those possessing over 1 million XRP. At present market values, these wallets contain a minimum of $500,000 in XRP. Thus, this category can be referred to as the “dolphin and whale” investors or holders.
In June 2023, the count of cryptocurrency wallets containing over 1 million tokens reached an record high. However, as prices declined, these substantial investors started selling off their tokens. At a certain point, the number of such wallets was approximately 50 fewer than the all-time peak of 2,014.
Despite the crypto market indicating signs of an upcoming bull run, it’s anticipated that XRP‘s price will align with this trend, leading major investors to re-enter the market. According to Santiment, a data provider for on-chain information, there has been a consistent increase in the number of wallets containing one million tokens or more throughout 2024. By April, this count had risen to 2,013, just one wallet short of reaching its previous peak and two away from setting a new record.
Why Are Large Investors Returning?
A potential explanation for the surge in interest from big-time investors in XRP is that technical signals are now becoming favorable for this cryptocurrency. Previously, there had been a window where these investors could acquire XRP tokens at reduced prices when the market took a downturn and XRP experienced nearly 40% price decreases along with other altcoins.
Related Reading: 3 Major Metrics To Watch Out For That Can Impact Ethereum Prices
In simpler terms, well-known cryptocurrency expert TonyTheBull shared his perspective on recent price drops via X (previously known as Twitter). He believes this downturn represents the last major sell-off for altcoins before they experience a significant surge, similar to what happened with Ripple (XRP) in 2017.
No, this was the final capitulation shakeout in $XRP
— Tony “The Bull” Severino, CMT (@tonythebullBTC) April 23, 2024
Large investors may have anticipated this rally and consequently purchased large quantities of XRP coins. Based on the 2017 trend, XRP’s price might surge past the $1 mark at a rapid pace, bringing substantial gains to investors.
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2024-04-23 20:10