The cryptocurrency market is struggling with volatility and XRP is no exception. After a promising start to the year, XRP’s price has mirrored a broader market decline triggered by Bitcoin’s recovery. However, in a bearish environment, a different story is unfolding underwater – with deep-pocketed investors, or “whales,” piling up altcoins at a significant clip.
Despite the low price, XRP whales accumulate millions
While the price of XRP has fallen significantly from its highs in March, whales have been quietly buying addresses. According to data from market intelligence platform Sentiment, analyzed by market researcher Ali Martinez, addresses between 10 million and 100 million XRP have been steadily adding to their holdings since early April.
This buying frenzy intensified after XRP’s sharp price drop in mid-April, with whales capitalizing on lower prices in a classic “buy-the-dip” strategy.
$XRP fell from $0.62 to $0.41, and #Crypto Whale took notice. They have made over 31 million purchases #XRP Just last week! pic.twitter.com/3FCA3PR3hi
— Ali (@ali_charts) 23 April 2024
The data shows that these whales acquired a whopping 30 million XRP tokens last week alone, bringing their combined holdings to 6.75 billion units. This buying frenzy indicates a possible change in sentiment among large investors, who feel unfazed by short-term price fluctuations and may be betting on XRP’s long-term prospects.
Deeper Dives: Whale activity indicates a sense of buoyancy
Looking deeper, the latest data suggests that this accumulation trend started even earlier, on April 5. Interestingly, this coincides with the end of the selling period for these same whales, where they offloaded some of their holdings.
However, since April 5, the pace of buying has been relentless, with whales amassing more than 600 million XRP in just two weeks. This significant accumulation suggests renewed confidence in XRP, potentially indicating a bullish outlook from these major 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, reaching a near-record high of 2,013 on Tuesday. This broad participation of various levels of large investors lends weight to the idea that XRP may be undervalued at its current price point.
Price of #XRP has jumped ahead of #altcoin Pack, jumping +6% to a high of $0.5687 today. Amount of wallets, 2,013, holding at least 1M $XRP Rising for the last six weeks (3.1% increase), and within 1 wallet #AllTimeHigh. https://t.co/2ZfC9v79x9 pic.twitter.com/rqKgcOYJJx
— Santiment (@santimentfeed) 22 April 2024
XRP outperforms other Altcoins
Meanwhile, Santiment revealed that XRP exceeds other altcoins in terms of wallet size. Wallets with 1 million or more coins have grown by 3% over the past six weeks. The increase in significant XRP holdings indicates that investor interest and confidence is growing.
While whale activity can be an important indicator of sentiment, it shouldn’t be the only factor driving investment decisions. However, the recent purchase of the XRP whale is a notable development, indicating a potential shift in sentiment and a potential turning point for the coin’s price.
Featured image from Pixabay, chart from TradingView
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