Cryptocurrency markets continue to struggle with volatility, and XRP is no exception. After a promising start to the year, the price of XRP has reflected a broader market downturn triggered by Bitcoin’s correction. But even amid the bearish sentiment, a different story is unfolding underwater. The story involves deep-pocketed investors, or “whales,” accumulating altcoins over a significant period of time.
XRP whales accumulate millions despite price decline
While the price of XRP has fallen significantly from its March highs, whale addresses have continued to quietly buy. The number of addresses holding between 10 and 100 million XRP has been steadily increasing since early April, according to data from market intelligence platform Santiment analyzed by market researcher Ali Martinez.
This buying frenzy intensified following XRP’s sharp price decline in mid-April, with whales taking advantage of low prices with a classic “buy the dip” strategy.
$XRP It fell from $0.62 to $0.41. #Cryptocurrency The whale took notice. More than 31 million units were purchased. #XRP last week! pic.twitter.com/3FCA3PR3hi
— Ali (@ali_charts) April 23, 2024
Data shows that these whales collected as many as 30 million XRP tokens last week alone, bringing their cumulative holdings to 6.75 billion units. This buying spree signals a potential shift in sentiment among large investors who are unfazed by short-term price fluctuations and are betting on XRP’s long-term prospects.
Deep Dive: Whale Activity Hints Optimism
Looking more closely, the latest data shows that this accumulation trend started much earlier, on April 5th. Interestingly, this coincided with the end of the sale period for the same whale, which disposed of some of its holdings.
However, since April 5, whale buying has been relentless, with over 600 million XRP raised in just two weeks. This significant accumulation suggests renewed confidence in XRP and potentially indicates an optimistic outlook from these major market participants.
Total crypto market cap currently at $2.391 trillion. Chart: TradingView
Further supporting this notion is the recent surge in the number of addresses holding at least 1 million XRP. These ‘mid-level whales’ have steadily increased, reaching a near-record 2,013 on Tuesday. This widespread participation by large investors from different walks of life adds weight to the idea that XRP may be undervalued at current price levels.
🐳The price is #XRP Got ahead. #altcoin Pack, up +6% today to $0.5687. Quantity of wallets, 2,013, minimum 1M $XRP It has been rising sharply over the past six weeks (up 3.1%), #All Time High. https://t.co/2ZfC9v79x9 pic.twitter.com/rqKgcOYJJx
— Santiment (@santimentfeed) April 22, 2024
XRP outperforms other Altcoins.
Meanwhile, Santiment stated that XRP outperforms other altcoins in terms of wallet size. The number of wallets holding more than 1 million coins has increased by 3% over the past six weeks. A significant increase in XRP holdings indicates growing investor interest and confidence.
Whale activity can be an important indicator of sentiment, but it should not be the only factor in making investment decisions. However, the recent large purchases of XRP whales are a notable development, suggesting a potential shift in sentiment and a turning point for the coin’s price.
Featured image from Pixabay, chart from TradingView
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