With the crypto market once again on the rise, XRP has seen positive headwinds and this has led to an improvement in investor sentiment. This positive recovery has led to more crypto investors taking up the altcoin, pushing a key cohort of holders to new all-time highs.
Wallets holding over 1 million XRP are approaching ATH
There has been a lot of selling among XRP investors over the past year as the price continued to struggle. This poor performance continued despite Ripple scoring multiple partial victories against the US Securities and Exchange Commission (SEC), prompting investors to jump ship.
One cohort of XRP holders that witnessed heavy selling are those with at least 1 million XRP tokens. At current prices, this would mean that these portfolios contain at least $500,000 at the bottom of the cohort, making this the cohort that includes the dolphins and whales.
The number of addresses with at least 1 million tokens reached an all-time high in June 2023. But as the price dropped, these large holders began to sell off, and at one point the wallet count was about 50 wallets below the level. all-time high in 2,014.
However, with the crypto market moving towards a new bull market, expectations are that the price of XRP will follow the rest of the market, prompting major investors to return. Data from Santiment, an on-chain data aggregation platform, shows that over the course of 2024, the number of wallets with 1 million tokens or more has steadily increased and as of April this figure now stands at 2,013, one wallet away from reaching the previous all-time high, and two wallets away from reaching a record new record.
Why are big investors returning?
One reason major investors are returning to XRP could be that indicators are finally turning bullish for the altcoin. There was also an opportunity for these investors to buy the tokens cheaply when the market crashed and altcoins like XRP suffered almost 40% losses.
Related reading: 3 key metrics to pay attention to that could impact Ethereum prices
Popular crypto analyst TonyTheBull took to X (formerly Twitter) to reveal the meaning of this price crash. According to the analyst, it was the last capitulation shakeout for the altcoin. Comparing it to a similar shakeout in 2017, it appears that XRP could see a massive rally after this.
No, this was the last capitulation shakeout in $XRP https://t.co/Z0uQ2GhS7v pic.twitter.com/qfWC6H8DNv
— Tony “The Bull” Severino, CMT (@tonythebullBTC) April 23, 2024
The big investors could also expect this rally, which is why they have been buying up large amounts of coins. If the 2017 rally is anything to go by, the XRP price could quickly soar through $1, delivering significant returns for investors.
Price trends toward $0.6 | Source: XRPUSDT on Tradingview.com
Featured image from U.Today, chart from Tradingview.com
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.