The digital asset connected to Ripple Labs, XRP, is causing a stir in the quickly evolving cryptocurrency space, where trends and values can change at any time. Important investors, commonly called “whales,” are significantly accumulating XRP coins despite the market turbulence. This is the start of an interesting story.
Even if the price of XRP has significantly decreased in line with wider market moves, whale addresses have been surprisingly active in accumulating the cryptocurrency.
After closely examining data from the market intelligence platform Santiment, market researcher Ali Martinez discovered that addresses with between 10 million and 100 million XRP had held an increasing amount of cryptocurrency since early April.
XRP Whales Capitalize on Market Dip, Accumulating 30 Million Tokens in One Week
Whales took advantage of the traditional “buy-the-dip” method to acquire Ripple at a discount after a significant price decrease in mid-April that sparked the accumulation trend.
According to the figures, addresses have received an incredible 30 million XRP coins in the last week alone, increasing their total holdings to 6.75 billion units. This surge in accumulation points to an evolution in these powerful investors; instead of worrying about short-term market swings, they might be setting themselves up for long-term success with Ripple.
A closer look at the data shows that the whales sold off some of their holdings on April 5, coinciding with their selling phase’s conclusion and the beginning of the current accumulation trend.
More than 600 million XRP tokens have been accumulated in just two weeks, proving that whale behaviour since April 5th has been characterized by constant accumulation. This massive accumulation rise suggests that important market participants are once again bullish about XRP’s future.
Moreover, new information suggests that an increasing proportion of addresses—also called “mid-tier whales”—have one million or more Ripple. As of Tuesday, these addresses had reached a virtually all-time high of 2,013; this suggests that larger investors are now participating, bolstering the notion that Ripple is inexpensive at its present price.
In addition to whale activity, Santiment data indicates that XRP’s wallet size is increasing more gradually than that of other altcoins. Wallets with a million or more Ripple tokens have increased by 3% over the last six weeks, suggesting that investors are becoming more confident and interested in the virtual currency.
Whale activity is a great indicator of market sentiment, but wise investors should consider a few things when choosing an investment. Nevertheless, the recent spike in whale purchases of XRP is a noteworthy development that may indicate a change in perspective and a turning point in the coin’s price trend.
