Crypto analyst Ali, citing Santiment data, has revealed that XRP whales have acquired a staggering 1.1 billion XRP tokens, amounting to approximately $570 million, since February. These prominent investors have been consistently purchasing XRP, capitalizing on periods of decline or consolidation to bolster their holdings.
Notably, in late June, as XRP witnessed a 12% price drop, whales seized the opportunity and bought up 360 million XRP tokens, valued at $170 million. Historically, XRP whales have exhibited a tendency to accumulate for extended durations, often coinciding with price increases. This pattern has drawn comparisons to a similar circumstance preceding a significant rally for the XRP/USD pair in late 2020.
The recent surge in XRP stockpiling by whales has corresponded with an upward trajectory in its price. In March, XRP experienced a notable surge, reaching highs of $0.545. The positive momentum continued throughout Q2, with Messari reporting a 42.5% year-to-date increase in XRP’s circulating market cap, primarily driven by its price surge in the first quarter of 2023. Although there was a slight dip in early May, the price of XRP nearly approached its yearly high achieved in late March during June.
Analyzing XRP’s daily charts, the price action suggests the potential for significant developments in the sixth-largest cryptocurrency. Notably, XRP appears to be forming a cup and handle formation while consolidating between its daily moving averages.
The “cup and handle” pattern, a bullish continuation indicator, signals a period of consolidation followed by an anticipated breakout. This price pattern illustrates XRP’s movement, resembling a cup, and subsequently followed by a downward-trending pattern.
Furthermore, the XRP Ledger has witnessed impressive network activity in the past quarter. On May 28, 2023, a remarkable 523,000 addresses received transactions, nearly eleven times the daily average witnessed during Q2. This extraordinary surge in address activity marks the second-highest recorded in the history of the XRP Ledger.
As XRP whales continue their accumulation spree, investors and market participants keenly observe the potential implications on the cryptocurrency’s future performance. With the formation of a cup and handle pattern on the charts, coupled with robust network activity on the XRP Ledger, the stage is set for a potentially significant development in the market.
As the sixth-largest cryptocurrency, XRP’s price trajectory and whale activity are key factors that crypto enthusiasts and investors will closely monitor in the coming weeks.ustained in Q2, 2023, as Messari reports that XRP’s circulating market cap is up 42.5% YTD, thanks primarily to its price rise in the first quarter of 2023. After a drop in early May, the price of XRP nearly returned to its yearly high set in late March in June.
