In the world of crypto, the actions of major investors, known as whales, can often yield valuable insights into the market sentiment surrounding a particular digital asset. Recent facts has revealed a common trend in the XRP market as whales have been actively accumulating millions of tokens in a short period of time, especially in the past three weeks.
This wave of whale activity has sparked intrigue and speculation among crypto enthusiasts, suggesting strong bullish sentiment towards Ripple’s remittance token.
Whales show bullishness on XRP
According to data shared on Twitter by renowned crypto analyst Ali, whales are making significant moves in the XRP market. Using Santiment’s data for behavioral analysis, Ali highlighted whales’ remarkable accumulation of XRP, indicating their strong belief in the token’s future prospects.
In the past three weeks alone, these prominent investors have acquired 52 million XRP, representing an estimated value of more than $22 million.
Notably, the accumulation trend has mainly been observed in XRP whales, particularly targeting holdings of 10 million to 100 million XRP. This period of intense accumulation began on May 7, after a notable sell-off that took place on April 12.
During the sell-off phase, Ripple’s token experienced a prolonged period of consolidation, due to the temporary exhaustion of the rally before the last move. However, the sell-off eventually subsided, paving the way for the current accumulation trend seen in whales.
What drives the accumulation
The sudden increase in XRP accumulation by whales has raised questions about what factors could be driving this bullish sentiment. While individual motivations may differ, several plausible explanations shed light on the underlying dynamics.
An important factor could be anticipating positive developments within the Ripple ecosystem, such as new partnerships or progress in adopting Ripple’s token for cross-border transactions.
Last month, Ripple (XRP), Cardano (ADA), and several other cryptocurrencies have recently received an adoption boost announced collaboration between Binance Pay and CoinGate. This partnership enables Binance Pay users to make crypto payments to merchants powered by CoinGate. In turn, CoinGate merchants can facilitate Binance Pay payments during the checkout process.
This new feature, which activates automatically, is suitable for various digital assets available on the Binance Pay platform, including Ripple (XRP), Cardano (ADA) and many others.
Notably, such developments often boost demand for Ripple’s token, leading investors to hoard the token in anticipation of future price increases. Additionally, recent regulatory clarity surrounding Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) may also have contributed to increased confidence among whales.
As Ripple continues to make progress in the legal process, resolution of the case could potentially remove a major overhang on XRP market sentiment, paving the way for renewed optimism and investment.
Meanwhile, following the accumulation of whales, XRP has shown an imminent revival. In the past 24 hours, Ripple’s token has seen a 1% gain. The asset is currently trading at $0.47 at the time of writing.
-Featured image of Unsplash, chart from TradingView
