The cryptocurrency market continues to face volatility and XRP was no exception. After a promising start to the year, the XRP price it reflected the broader market decline triggered by the Bitcoin correction. However, amid the bearish sentiment, a different story is unfolding underwater – a story involving deep-pocketed investors, or “whales,” accumulating the altcoin at a significant pace.
XRP Whales Accumulate Millions Despite Price Drop
Although the price of XRP has fallen considerably from its March highs, whale addresses are quietly on a buying spree. According to data from market intelligence platform Santiment, analyzed by market researcher Ali Martinez, address holders of between 10 million and 100 million XRP have been steadily increasing their holdings since the beginning of April.
This buying frenzy intensified following the sharp drop in the price of XRP in mid-April, with whales capitalizing on lower prices in a classic “buy the dip” strategy.
$XRP fell from US$0.62 to US$0.41, and #crypto the whales noticed. They bought more than 31 million #XRP just last week! pic.twitter.com/3FCA3PR3hi
-Ali (@ali_charts) April 23, 2024
The data reveals that these whales have accumulated an impressive 30 million XRP tokens in the past week alone, bringing their accumulated holdings to a robust 6.75 billion units. This buying spree indicates a potential shift in sentiment among these large investors, who appear unfazed by short-term price fluctuations and may be betting on XRP’s long-term prospects.
Dive Deeper: Whale Activity Suggests Bullish Sentiment
Digging deeper, the latest data suggests this accumulation trend started even earlier, on April 5th. Interestingly, this coincides with the end of a period of sale by these same whales, where they unloaded some of their holdings.
However, since April 5th, the buying spree has been relentless, with whales accumulating over 600 million XRP in just two weeks. This significant accumulation suggests renewed confidence in XRP, potentially signaling an optimistic outlook from these key market players.
Total crypto market cap currently at $2.391 trillion. Chart: TradingView
Further reinforcing this notion is the recent increase in the number of addresses holding at least 1 million XRP. These “mid-level whales” have been steadily increasing, with their ranks reaching a near-record high of 2,013 on Tuesday. This broader participation from various levels of large investors adds weight to the idea that XRP may be undervalued at its current price.
🐳 The price of #XRP jumped ahead of #altcoin package, jumping +6% and reaching US$0.5687 today. The number of wallets, 2,013, containing at least 1 million $XRP has been increasing over the last six weeks (increasing 3.1%) and is within 1 portfolio of the #AllTimeHigh. https://t.co/2ZfC9v79x9 pic.twitter.com/rqKgcOYJJx
– Santiment (@santimentfeed) April 22, 2024
XRP Outperforms Other Altcoins
Meanwhile, Santiment revealed that XRP is surpassing other altcoins in terms of wallet size. Wallets with 1 million or more coins have increased, with a 3% gain in the last six weeks. The increase in significant holdings in XRP indicates that investor interest and confidence are increasing.
While whale activity can be a significant indicator of sentiment, it should not be the only factor driving investment decisions. However, the recent buying spree by XRP whales is a noteworthy development, suggesting a potential shift in sentiment and a possible turning point in the coin’s price.
Featured image from Pexels, chart from TradingView
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