The cryptocurrency market has been facing volatility, and XRP has been no exception. Despite a bearish sentiment in the market triggered by Bitcoin’s correction, a different story is unfolding underwater. Deep-pocketed investors, known as “whales,” have been actively accumulating XRP at a significant clip. While the price of XRP has suffered a considerable dip from its highs in March, whale addresses holding between 10 million and 100 million XRP have been steadily increasing their holdings since early April.
Following XRP’s sharp price drop in mid-April, whales have taken advantage of the lower prices to engage in a classic “buy-the-dip” strategy. According to data from market intelligence platform Santiment, these whales have acquired a whopping 30 million XRP tokens in the past week alone, pushing their cumulative holdings to 6.75 billion units. This accumulation trend indicates a potential shift in sentiment among large investors, who appear to be optimistic about XRP’s long-term prospects.
Renewed Confidence in XRP
The buying spree by whales began on April 5th, coinciding with the end of a selling period where these same investors offloaded some of their holdings. Since then, whales have relentlessly accumulated over 600 million XRP in just two weeks. This significant uptick in accumulation suggests a renewed confidence in XRP and a bullish outlook from key market players.
Increase in Mid-Tier Whales
In addition to large whales, there has been a surge in the number of addresses holding at least 1 million XRP, known as “mid-tier whales.” The ranks of these mid-tier whales reached a near-record high of 2,013 on Tuesday, indicating broader participation from various tiers of large investors. This growing interest from mid-tier whales adds weight to the idea that XRP may be undervalued at its current price point.
Santiment revealed that XRP is leading the pack in terms of wallet size compared to other altcoins. Wallets holding 1 million or more XRP coins have seen a 3% increase over the last six weeks, indicating rising interest and confidence among investors. While whale activity is a significant indicator of sentiment, it should not be the sole factor influencing investment decisions. However, the recent buying spree by XRP whales is a noteworthy development, signaling a potential shift in sentiment and a possible turning point for the coin’s price.
The accumulation of XRP by whales and the increase in mid-tier whale participation suggest a growing confidence in the cryptocurrency’s future. While market volatility remains a concern, the actions of these large investors point towards a positive outlook for XRP. It is important for investors to conduct their own research and consider all aspects before making investment decisions. The rise of XRP whales could potentially shape the future trajectory of the altcoin.
