XRP, like many other cryptocurrencies, recently experienced a significant downturn in price, dropping to $0.438 after a widespread selloff in the crypto market. Despite this sharp decline, on-chain transaction data shows that large holders, known as ‘whales,’ are taking advantage of the lower prices to accumulate more XRP on different exchanges.
Whale Alerts, a whale transaction tracker, has identified a notable accumulation pattern among XRP holders. Over the past 48 hours, there have been multiple instances of substantial XRP transfers to and from various exchanges. Most of these transfers involve moving large amounts of XRP into private wallets from crypto exchanges.
One of the biggest transfers recorded was the movement of 26.69 million XRP tokens worth $13.6 million from Binance to a private wallet identified as “rhWj9g.” Additionally, a total of 157 million XRP tokens, equivalent to around $75.16 million, have been shifted from crypto exchanges into private wallets within the past 24 hours. Interestingly, many of these transfers originated from Binance.
While most whales seem to be accumulating XRP during this price downturn, there have been indications of a potential selloff as well. A significant transaction saw 31.7 million XRP tokens, valued at $15.1 million, being transferred to Bitstamp from a private wallet. This movement contrasts with the overall trend of accumulation, suggesting that not all whales are buying more XRP.
Over a 48-hour period, Whale Alerts data indicates a cumulative accumulation of 228.54 million XRP tokens worth $108.78 million from crypto exchanges into private wallets. This strategic accumulation by whales could potentially signal a future price recovery, as substantial buy-ins from large holders often result in market upswings. The confidence displayed by whales in buying during the price slump indicates a belief that the current downturn is only temporary.
XRP recently saw a rapid decline from $0.653 to $0.438 within five days, erasing the gains made in July. This significant drop pushed the cryptocurrency into the oversold region on the Relative Strength Index (RSI). Despite this, XRP has managed to recover some of its losses, with the RSI indicator showing increased buying momentum as investors re-enter the market.
At the time of writing, XRP is trading at $0.5016, reflecting a 7.11% increase over the past 24 hours. This recovery has brought XRP back to a crucial multi-month resistance and support level around the $0.5 mark, a price point that historically has been a significant threshold for the cryptocurrency. Breaking away from this price point has been a challenge for XRP in the past, making it a crucial level to watch for potential price movements in the future.
