- XRP is down 2.82% in the last 24 hours.
- Ripples whale buys 110 million XRP tokens worth $242 million.
Over the past 24 hours, the cryptocurrency market has experienced strong downward pressure. XRP was not spared as most altcoins declined after BTC fell to $95,000. During this period, Ripple (XRP) suffered a sharp decline and hit a low of $2.15.
The decline has created a buying opportunity among investors, especially whales. So the whales shifted to buying the dip.
Ripple Whale Buys a Dip
In his analysis, Ali Martinez observed that Ripple’s whales switched to XRP accumulation following the market decline.
Source: X
According to him, Ripple Whales purchased an additional 110 million XRP tokens worth $242 million. Purchases by large holders show confidence in the prospects of the XRP market.
The Taker buy-sell ratio shows a surge in buying activity over the past two days. This ratio continued to decrease from 0.91 to 0.93, suggesting that buyers entered the market after increased selling pressure the previous day.
Source: CryptoQuant
This shift from high selling pressure to increased buying suggests that investors are optimistic and see the current XRP price as the perfect price to re-enter the market.
Will this affect the price chart of XRP?
In general, increased buying pressure, especially among large holders, has a positive effect on asset prices.
However, XRP was under strong downward pressure. At press time, XRP was trading at $2.28. This represents a decline of 2.82 on the daily chart. On the weekly chart, the altcoin is down 2.72%.
Source: CryptoQuant
The recent decline appears to have caused panic selling. The surge in exchange supply rates reflects the negative sentiment of holders. It soared to 0.029, which is a sign that the inflow to the exchange has increased.
Investors are moving more tokens to exchanges than they are withdrawing. These market trends suggest that investors are selling or preparing to sell.
Source: CryptoQuant
A decline in market participation is noticeable, with active addresses decreasing from 59,561 to 44.1k. This decline risks overvaluing altcoins and sending them down the price charts.
Simply put, whales are continuing to buy, but the bears are currently gaining ground and upward momentum is waning while downward pressure intensifies.
Read XRP’s price prediction for 2024-2025
If this sentiment holds, XRP could fall further, especially in the short term. Therefore, the altcoin could fall to $2.20. However, as buying from whales increases, buying pressure could allow XRP to claw back $2.35.