Since gaining regulatory approval in the United States, XRP, the digital token associated with Ripple, has remained in the spotlight. The non-security rating has apparently whetted the appetite of large-scale investors, colloquially known as whales. There has been a remarkable increase in these portfolios, but what does this mean for the everyday investor?
Let’s dive in.
A Wave of Whales: Is Bigger Better?
Santiment, a cryptocurrency market intelligence platform specializing in on-chain analysis, reported via a social media post that the number of XRP whale wallets has experienced a remarkable increase. These high-end wallets each hold a staggering minimum of 100 million XRP, equating to a significant value of at least $74 million.
The amount of #XRP whale wallets with more than 100 million coins (at least $74 million) have risen to 199, which is the most wallets since May 13. Market cap No. 4 is a popular trending topic in July, and $XRP has shown moderate price correlation with these fluctuations. https://t.co/XOLhJjttwI pic.twitter.com/iSBKG9pIPH
— Santiment (@santimentfeed) July 23, 2023
The increase to 199 addresses of this size corresponds to the peak number recorded since May 13. This is undoubtedly an important development in the XRP ecosystem and may indicate an upward trend in investor confidence or market dynamics.
XRP Whales’ historic dance
Looking back at Santiment’s chart, we can see that there were 200 XRP whales active in July 2022 that collected the digital token when the price was below $0.40. However, as the value of XRP surged above $0.518 in the following three months, these investors changed their tune and began to unburden their positions, leading to a downward trend.
Ahead of the period between December and March 2023, the whales made a comeback. The average XRP price hovered around $0.414 during this phase of re-accumulation. Another sell-off followed in April, pushing the number of whale wallets below 200.
XRP price Analysis
At the time of writing this article, the XRP price is at $0.72, keeping its position as the fourth largest cryptocurrency by market capitalization stable. A technical analysis of the current status of XRP reveals a bearish trend on both the daily and weekly charts.
Read more: SEC’s Ripple Appeal unlikely to affect XRP holders, says attorney John Deaton
The bulls are clearly struggling to break free from the bears’ grasp. However, the Exponential Moving Average (EMA) suggests that there is still resistance to an uptrend.
Despite the current bearish signals, the whales XRP’s continuous accumulation and disposition cycles can provide much-needed liquidity and volatility.