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- XRP is down 2.82% in the past 24 hours.
- Ripples whales buy 110 million XRP tokens worth $242 million.
Over the past 24 hours, the crypto market has experienced strong downward pressure. As most altcoins fell following BTC’s drop to $95,000, XRP was not spared. During this period, Ripple’s [XRP] has seen a sharp decline, reaching a low of $2.15.
This decline has created a buying opportunity for investors, especially whales. As such, whales have taken to buying the dip.
Ripple whales buy the dip
In his analysis states Ali Martinez noted that Ripple’s whales have turned to accumulating XRP after the market dip.
Source:
According to him, Ripple Whales have purchased an additional 110 million XRP tokens worth $242 million. When large holders buy, it shows their confidence in the prospects of the XRP market.
We can see the increase in buying activity over the past two days as shown by the Taker buy-sell ratio. This ratio has turned from a sustained decline of 0.91 to 0.93, indicating that buyers have entered the market following an increase in selling pressure in recent days.
Source: CryptoQuant
Such a shift from higher selling pressure to more buying suggests that investors are optimistic and view current XRP rates as perfect prices to re-enter the market.
Impact on XRP price charts?
Normally, increased buying pressure, especially among large investors, has a positive impact on asset prices.
However, XRP experienced strong downward pressure. At the time of writing, XRP was trading at $2.28. This represented a drop of 2.82 on the daily charts. On the weekly charts, the altcoin is down 2.72%.
Source: CryptoQuant
The recent dip appears to have led to panic selling. The sharp increase in the exchange offer ratio reflects negative sentiment among holders. It has risen to 0.029, indicating increased inflows into the stock markets.
Investors are transferring more tokens to exchanges than they are withdrawing. This market behavior suggests that investors are either selling or preparing to sell.
Source: CryptoQuant
The decline in market participation is notable, with active addresses falling from 59,561 to 44.1k. Such a decline risks the altcoin becoming overvalued, leading to a decline in the price charts.
Simply put, while whales are buying all the time, bears are currently strong and bullish momentum is waning while downside pressure is building.
Read XRP’s 2024-2025 Price Prediction
If this sentiment holds, we could see XRP fall further, especially in the short term. As such, the altcoin could drop to $2.20. However, with increased whale buying, buying pressure could see XRP regain $2.35.
