On-chain data indicates that XRP whales have been actively buying substantial amounts of the asset recently, which may be a key factor behind the cryptocurrency’s recent surge in value.
XRP Whales Have Added 470 Million Tokens To Their Supply Recently
According to a recent analysis by Ali Martinez, XRP whales have significantly increased their holdings over the past ten days. The primary metric in focus here is the “Supply Distribution” from the on-chain analytics firm Santiment. This indicator monitors the total number of tokens held by specific wallet groups.
Wallets are categorized into groups based on their current balances. For example, a wallet holding 5 coins would fall into the 1 to 10 coins category. In this context, whale entities are the focus, typically defined as wallets holding between 100 million to 1 billion XRP. At the current exchange rate, this range translates to approximately $63.1 million to $631 million.
Generally, the more tokens an entity holds, the greater its influence on the network. Therefore, the behavior of these whales is crucial to monitor. Although their actions might not directly impact the price, they can provide insights into the sentiment within this influential cohort.
Significant Increase in Whale Holdings
Recent data shows a notable increase in the supply of XRP held by whales. Specifically, these large investors have accumulated over 470 million tokens, worth almost $300 million, in the past ten days.
The chart below illustrates the trend in the Supply Distribution of XRP whales over the recent days:
Whales’ Strategic Buying
The majority of this buying activity occurred when XRP was trading around the $0.58 mark. This suggests that the whales considered this price level to be a profitable entry point. Their strategy has paid off, as the cryptocurrency’s price has risen from below $0.59 to above $0.63 over the past weekend.
Future Implications
While the current trend is promising for XRP, it’s important to keep monitoring this indicator. The future actions of these whales could significantly influence the asset’s price again. If the indicator continues to rise, it would signal bullish sentiment among the whales, potentially leading to further price increases. Conversely, a decline could indicate profit-taking, which might negatively impact the price.
XRP Price
At the time of writing, XRP is trading at approximately $0.631, reflecting an 8% increase over the past week.
