Home Altcoins News XRP Whales Accumulate Tokens Despite Price Volatility, On-Chain Data Shows

XRP Whales Accumulate Tokens Despite Price Volatility, On-Chain Data Shows

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XRP, the cryptocurrency associated with Ripple, has experienced a series of highs and lows throughout this year, keeping investors on their toes. However, amidst the price volatility, an intriguing trend has emerged – large investors, commonly referred to as whales, have been consistently accumulating XRP tokens since February. This ongoing accumulation suggests that these investors hold a positive outlook for the future of the digital asset.

Renowned crypto chartist Ali Martinez recently drew attention to this noteworthy trend in a tweet. Citing data from Santiment, a blockchain analytics tool, Ali highlighted that whales holding between 10 million and 100 million XRP tokens have accumulated an astonishing 1.1 billion XRP since late February. At the time of this disclosure, the total value of these tokens equated to approximately $570 million.

A closer examination of Santiment’s XRP charts provides further evidence supporting this observation. The data reveals that these deep-pocketed addresses have steadily increased their collective balance since it reached a one-year low in late February.

It is worth noting that the balance of these whale addresses had plummeted to a mere 3.61 billion XRP tokens on February 17. The last time their combined holdings reached this level was back in February 2022, when XRP was still trading between $0.6 and $0.9.

As XRP continued its descent, these whales seized the opportunity to accumulate more tokens at discounted prices over the subsequent months. However, from November 2022 to February 2023, they initiated a selling campaign, leading to the decline in the collective balance to 3.61 billion XRP.

Despite this drop, a new accumulation trend emerged. These investors resumed their accumulation efforts, undeterred by market turbulence and intermittent rallies. As a result, the total balance of these addresses has gradually increased to the current value of 4.71 billion XRP.

The remarkable rate of accumulation underscores the fact that these investors have acquired 1.10 billion XRP in less than five months. The accumulation trend gained notable momentum in late March, coinciding with bullish speculations surrounding the Ripple vs. SEC lawsuit, which contributed to XRP’s rally during that period.

Interestingly, this accumulation trend has persisted alongside the growing interest in Bitcoin (BTC) and other cryptocurrencies among institutional investors. Market data confirms that institutional players such as BlackRock, Wisdom Tree, and Invesco have shown increasing interest in crypto assets. The sustained accumulation efforts by whales and other XRP holders indicate a positive sentiment and long-term confidence in the potential of the digital asset market.

It is essential to highlight that alongside the accumulation by whales, addresses holding smaller amounts of XRP have also been accumulating tokens over the past months. Santiment data confirms that addresses holding between 10,000 and 1 million XRP have accumulated a significant 750 million XRP since mid-January.

Despite the accumulation efforts by these investors, the price of XRP has remained stagnant since dropping below $0.50 on June 23. The cryptocurrency has primarily traded within the range of $0.46 to $0.49 during this period, with unsuccessful attempts to reclaim the $0.50 territory. As of now, XRP is exchanging hands at $0.4682, representing a 0.45% decrease in the last 24 hours.

As market participants closely observe the behavior of these influential investors, it remains to be seen how their accumulation efforts will impact the future trajectory of XRP. The persistence of accumulation amidst price stagnation suggests a bullish sentiment and indicates that these investors foresee potential value in holding XRP tokens.

However, it is crucial to remember that investing in cryptocurrencies carries inherent risks. Readers are strongly encouraged to conduct thorough research and seek professional advice before making any investment decisions.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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