As the cryptocurrency market rose once again, XRP experienced positive headwinds, which triggered an improvement in sentiment among investors. Due to this positive recovery, more cryptocurrency investors are moving to acquire altcoins and a very significant group of holders are pushing for new all-time highs.
Wallets holding more than 1 million XRP are approaching ATH.
There has been a lot of selling among XRP investors over the past year as the price continues to fall. Despite Ripple’s multiple partial victories against the U.S. Securities and Exchange Commission (SEC), this poor performance has continued, causing investors to jump ship.
One group of XRP holders that has seen a lot of selling are addresses holding at least 1 million XRP tokens. At current prices, this wallet holds at least $500,000 at the bottom of the cohort, making it the cohort that includes dolphins and whales.
The number of addresses holding at least 1 million tokens reached an all-time high in June 2023. But as the price fell, these large holders began selling, and at one point the number of wallets fell below about 50 wallets. It reached an all-time high in 2014.
However, as the cryptocurrency market moves towards another bull market, there are expectations that the price of XRP will follow the rest of the market and large investors will return. Data from Santiment, an on-chain data aggregation platform, shows that the number of wallets holding more than 1 million tokens has steadily increased throughout 2024, and by April this figure has now reached 2,013. It broke the previous all-time high and is two wallets away from setting a new record.
Why are large investors returning?
One of the reasons large investors are returning to XRP could be because indicators are finally turning more bullish on the altcoin. There was also an opportunity for these investors to buy tokens cheaply when the market crashed and altcoins like XRP lost nearly 40%.
Related Reading: 3 Key Indicators to Watch That Could Affect Ethereum Price
Popular cryptocurrency analyst TonyTheBull took to X (formerly Twitter) to reveal the significance of this price crash. According to analysts, this was the final surrender of altcoins. Comparing this to a similar reshuffle in 2017, we can see that XRP could mount a massive rally afterwards.
No, this was the final surrender reorganization. $XRP https://t.co/Z0uQ2GhS7v pic.twitter.com/qfWC6H8DNv
— Tony “The Bull” Severino, CMT (@tonythebullBTC) April 23, 2024
Large investors were also able to anticipate this rally, which is why they are buying large amounts of coins. If the 2017 rally continues, the price of XRP could quickly surpass $1, delivering significant returns to investors.
Price trends toward $0.6 | Source: XRPUSDT on Tradingview.com
Featured image from U.Today, chart from Tradingview.com
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Source: NewsBTC.com