XRP Whales Buy Heavily as Price Approaches $1
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XRP's significant holders, often referred to as "sharks" and "whales," have maintained a consistent accumulation pattern over the past nine months, even as the cryptocurrency's price has recently declined by approximately 30%.
MissedBlock Desk · 3 min read
XRP Whales Continue Accumulation Amidst Price Slump
XRP’s significant holders, often referred to as “sharks” and “whales,” have maintained a consistent accumulation pattern over the past nine months, even as the cryptocurrency’s price has recently declined by approximately 30%.
The digital asset experienced a notable 19% drop in the past week, attributed to a confluence of factors including higher-than-expected US inflation figures, a sell-off in tech and AI stocks, and the Democratic Party securing majorities in both the US House and Senate following the midterm elections.
Should XRP manage to hold the $1.00 mark while these large wallets continue their purchasing activity, analysts suggest the price could rebound to the $1.10-$1.15 range.
The XRP rich list, which tracks the number of wallets holding substantial amounts of the cryptocurrency, has shown steady growth. This trend persists despite the recent market downturn that has affected most of the cryptocurrency sector in November.
Data from blockchain analytics firm Santiment Intelligence indicates that XRP wallets holding at least 10,000 coins have increased to a total of 343,500. This represents a 5.15% rise over the last nine months. Furthermore, the overall number of XRP holders has seen consistent expansion throughout the past year, now standing at 8.66 million.
The recent price decline of approximately 30% over the last seven weeks, and 18.75% in the past week, has been exacerbated by other market events. These include a significant hack of the Binance exchange that involved nearly $300 million worth of XRP, and institutional investors offloading approximately $18 million in XRP exchange-traded funds (ETFs) in the preceding two days.
Adding to the bearish sentiment, a prominent figure and former Ripple executive acknowledged halting his XRP purchases, citing a low risk tolerance and divesting over 88% of his XRP holdings.
Santiment describes the current situation, where these accumulation metrics diverge from the falling price, as an “encouraging divergence.” Historically, this pattern, where large-capital traders absorb selling pressure rather than exiting the market alongside retail investors, is considered a bullish indicator.
The $1.00 price level is now a critical point to monitor. If XRP whales persist in their accumulation and the cryptocurrency remains above $1, coupled with a stabilization in Bitcoin prices, XRP could potentially climb back to the $1.10 to $1.15 range.
Conversely, a short-term sell-off could occur if wallet growth trends reverse and XRP’s price falls below $1. However, once retail investor fear, uncertainty, and doubt (FUD) subsides, prices may begin to recover and retest the psychological support level of $1.00.