Ripple’s XRP is expected to experience a remarkable boost after witnessing substantial accumulation by whales, amassing an impressive $220 million in the past week.
This strategic move by influential investors arrives at a pivotal juncture as XRP has been navigating an extended consolidation phase, lagging behind other digital assets such as Solana (SOL) and Cardano (ADA).
Popular market analyst Ali Martinez brought attention to this substantial XRP accumulation by whales via X (formerly Twitter), revealing that these major investors acquired approximately 360 million XRP between December 14 and 22, translating to a considerable value of over $220 million.
Notably, these whales, typically identified as investors holding between 10 million XRP to 100,000,000 XRP, had conspicuously refrained from XRP accumulation for the past three months. However, over the last seven days, whales have reignited their XRP accumulation, signalling potential anticipation of the asset’s next breakout.
Notably, during the October to mid-November surge in XRP, whale activities closely mirrored the cryptocurrency’s performance. The number of wallets holding at least 10,000 XRP reached an unprecedented high of 277.62K addresses during this period, as per data from Santiment. Simultaneously, transactions involving XRP valued over $1 million peaked with 255 whale transactions, indicative of a bullish sentiment.
Elsewhere, insights derived from on-chain data underscore an increasing appeal in XRP’s utility. Beyond periodic price slumps, XRP’s heightened utility as a settlement token through RippleNET and on-demand liquidity (ODL) solutions from Ripple Labs, its affiliated American blockchain payments company, fortifies its position. The growing adoption of the XRP Ledger (XRPL) through sidechains such as Evernode and Xahau further contributes to the digital currency’s relevance.
While the recent whale resurgence for XRP and other fundamentals are promising, its market performance remains lacklustre compared to the explosive success witnessed in the broader cryptocurrency market.
From the onset of November, the sixth-largest cryptocurrency has found itself ensnared in a narrow consolidation phase, with its price exhibiting minimal movement over the past week. The prospect of a bullish breakout from the symmetrical triangle pattern discernible on the daily chart holds the potential to propel it towards the $1 resistance level and higher.
At press time, XRP was trading at $0.63, reflecting a marginal 0.02% decline in the last 24 hours. Notably, the current price positions just above a critical multi-year support level of $0.55.