Data from the chain shows that the XRP whales have been participating in a significant number of purchases recently, a possible reason behind the asset’s surge.
XRP whales recently added 470 million tokens to their offering
As explained by analyst Ali Martinez in a new after on The relevance indicator here is on-chain analytics company Santiment’s ‘Supply Distribution’, which tracks the total number of tokens a given wallet group currently carries.
Addresses or investors are placed in these groups based on their current balance. For example, 5-coin wallets fall into the 1 to 10 coin group. In the context of the current topic, the whale entities are the addresses of interest.
The range of this group is typically defined as 100 million to 1 billion XRP. At the current exchange rate, the low end of this range amounts to approximately $63.1 million, while the high end comes to $631 million. In general, the influence of each entity on the network increases as they have more assets, so the whales, who have a pretty gigantic balance, would have some degree of power.
As such, the behavior of these investors may be worth keeping an eye on, because while it may not have a direct impact on the price, it can at least tell us what the sentiment is like among this cohort.
Here is a chart showing the trend in the supply distribution of the XRP whales over the past few days:
As shown in the chart above, the supply of XRP whales has registered a notable increase recently. More specifically, these giant investors have added more than 470 million (nearly $300 million) tokens to their wallets in the past ten days.
The chart shows that most of this buying took place while the asset was still trading around $0.58, indicating that the whales believed this level offered a profitable window into the coin.
These investors’ efforts have clearly paid off, as the price of the cryptocurrency has risen from below $0.59 to above $0.63 over the weekend.
While the coin is doing well so far, it could be an indicator to watch in the near future as what this cohort would do next could ultimately be reflected back in the asset’s price.
If the indicator continues to rise, this will obviously be a bullish sign for XRP as it would imply that the whales are supporting a further rise. On the other hand, a decline could be bad news as it would mean the whales are participating in profit taking.
XRP price
At the time of writing, XRP is trading around $0.631, up 8% in the past week.
