Recent market data reveals a growing trend of XRP accumulation by large investors, also known as whales. This accumulation comes amidst a period of price turbulence for XRP, which has seen its value decline in recent weeks.
XRP Price Movement and Market Context
Earlier this year, XRP benefited from a broader market upswing, experiencing a significant price increase. From a low of $0.4853 on January 31st, XRP surged by over 50%, reaching a yearly high of $0.7440 on March 11th. However, this rally coincided with a major resistance level, leading to a price correction.
This correction was further amplified by broader market volatility, with Bitcoin (BTC) and other cryptocurrencies experiencing similar price declines. Despite the price drop, some market participants appear to be taking advantage of the situation by accumulating XRP, potentially employing a “buy-the-dip” strategy.
Whales Accumulate XRP
Data from the on-chain intelligence platform Santiment, as highlighted by market analyst Ali Martinez, indicates a sustained accumulation pattern by whale addresses holding between 1 million and 10 million XRP. Over the past two weeks, this group has reportedly added 110 million XRP, valued at approximately $55 million, to their holdings.
This buying activity has resulted in a significant increase in the cumulative balance of these whale addresses. As of the latest reporting period, their holdings stand at roughly 3.69 billion XRP, representing approximately 6.7% of XRP’s circulating supply. This figure reflects an upward trend compared to the 3.61 billion XRP recorded on April 29th.
Further Accumulation by Larger Whales
The data also reveals a similar accumulation trend among whale addresses holding between 10 million and 100 million XRP. These addresses have reportedly increased their holdings from 6.16 billion XRP on April 5th to 6.59 billion XRP at present.
This represents a net accumulation of 430 million XRP over the past five weeks. Combining the figures from both whale cohorts, the total accumulated XRP over the past five weeks reached 540 million XRP, valued at roughly $270 million.
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Investor Confidence Despite Price Struggles
Interestingly, the number of wallets holding between 10 million and 100 million XRP has also been steadily increasing since the beginning of the year. From 189 wallets at the end of 2023, the number has grown to 247 today, indicating an influx of 58 new whale addresses.
While XRP has underperformed in the past 24 hours compared to a resurgence in Bitcoin and the broader market, some analysts remain optimistic. They predict a potential price increase for XRP, possibly reaching $0.65 by the weekend.
Additionally, data from Coinglass suggests that investors are continuing to withdraw their XRP holdings from exchanges, potentially reducing selling pressure and contributing to a future price rise.
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