The XRP Whales Are On A Massive Accumulation Spree.

Since reaching an all-time high of $3.85 in January 2018, XRP, the native coin for the Ripple network, has been on a rollercoaster ride. The coin’s price has dropped by nearly 80% since last year, owing to an ongoing Securities and Exchange Commission (SEC) litigation as well as worldwide macroeconomic difficulties.

XRP is currently trading at about $0.385 after rising 1.95% on the day. However, despite the fact that the currency has broken the $0.4 multiyear support, a lot is happening structurally, signaling that investors are sure price will soon be out of the woods.

According to Santiment, XRP whales have been particularly active recently as prices have fallen. The analytics firm noted in a tweet this week,

“XRP network whales holding between 1M and 10M $XRP have collectively been accumulating, and now hold their highest percentage of the asset’s supply in 2 months.”

XRP whales in this group are the most active among non-exchange holders, holding 6.12% of all coins in circulation.

This amount of activity is also reflected in XRP’s large market capitalisation. Currently, XRP is ranked sixth with a market capitalization of $18.6 billion, trailing Binance Chain’s BNB but ahead of BUSD and Cardano.

The silver lining for XRP might also be attributed to Ripple’s efforts outside of the pricing aspect. The Ripple team has spent the last two years primarily developing products geared at long-term network improvement while pushing their first cross-border payment products.

The volume of Ripple’s cross-border payments product “On-Demand Liquidity (ODL)” hit $8 billion in the first quarter of 2022, up from $1 billion at the same time previous year.

In an interview with CNBC earlier this week, Ripple CEO Brad Garlinghouse hinted at a plan to investigate the possibility of an Initial Public Offering (IPO) once the company’s SEC lawsuit is resolved.

If this occurs, the crypto may recover and begin a protracted bull run on major US exchanges. For the time being, XRP faces a drop to $0.33 if it loses support near $0.35. However, firm rejection wicks on daily candles in the last two weeks near the $0.38 level imply that the sell-off may be slowed for the time being.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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