The cryptocurrency market continues to struggle with volatility, and XRP was no exception. After a promising start to the year, the price of XRP reflects the broader market decline due to Bitcoin’s correction. Amid the bearish sentiment, however, another story is unfolding underwater – one about deep-pocketed investors, or “whales,” accumulating the altcoin at a significant clip.
XRP Whales Raise Millions Despite Price Drop
While the price of XRP has dropped significantly from its March high, whale addresses have been quietly buying. According to data from market intelligence platform Santiment, analyzed by market researcher Ali Martinez, addresses holding between 10 million and 100 million XRP have steadily increased since early April.
This buying frenzy intensified after XRP’s sharp price drop in mid-April, with whales taking advantage of lower prices in a classic “buy-the-dip” strategy.
$XRP fell from $0.62 to $0.41, and #crypto whales noticed. They bought over 31 million #XRP just this past week alone! pic.twitter.com/3FCA3PR3hi
— Ali (@ali_charts) April 23, 2024
The data shows that these whales have amassed a whopping 30 million XRP tokens in the past week alone, bringing their cumulative holdings to a hefty 6.75 billion units. This buying frenzy signals a potential shift in sentiment among these large investors, who appear unfazed by the short-term price swings and may be betting on XRP’s long-term prospects.
Diving deeper: Whale activity signals bullish sentiment
Looking deeper, the latest data suggests that this accumulation trend started even earlier, on April 5. Interestingly, this coincides with the end of a sales period of the same whales, during which they lost some of their assets.
Since April 5, however, the buying spree has been relentless, with whales amassing more than 600 million XRP in just two weeks. This significant accumulation signals renewed confidence in XRP, possibly signaling a bullish outlook from these key market players.
Total crypto market cap currently at $2.391 trillion. Chart: TradingView
This idea is further reinforced by the recent increase in the number of addresses holding at least 1 million XRP. These “medium whales” have been steadily increasing, with their ranking reaching a near-record high of 2,013 on Tuesday. This broader participation from various levels of major investors reinforces the idea that XRP could be undervalued at its current price.
🐳The price of #XRP has jumped ahead of the #altcoin pack, up +6% and reaching a high of $0.5687 today. The number of wallets, 2,013, with at least 1 million $XRP has soared over the past six weeks (up 3.1%) and is within 1 wallet of the #AllTimeHigh. https://t.co/2ZfC9v79x9 pic.twitter.com/rqKgcOYJJx
— Santiment (@santimentfeed) April 22, 2024
XRP outperforms other Altcoins
Meanwhile, Santiment announced that XRP surpasses the other altcoins in terms of wallet size. Portfolios holding 1 million or more coins have increased, with a gain of 3% in the past six weeks. The increase in significant XRP holdings indicates that investor interest and confidence are increasing.
While whale activity can be an important indicator of sentiment, it should not be the only factor driving investment decisions. However, the recent buying spree by XRP whales is a notable development, signaling a possible shift in sentiment and a potential turning point for the coin’s price.
Featured image from Pixabay, chart from TradingView
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