On-chain data shows that XRP whales have moved into a large buying zone recently, a potentially bullish sign for the price of the cryptocurrency.
XRP Whales Have Been Increasing Their Holdings Recently
As shown by analyst Ali Martinez in a new post on X, XRP whales have shown a significant net increase over the past ten days. The correlation indicator here is “Supply Distribution” from the on-chain analytics company Santiment, which tells us about the amount of XRP the wallet group is currently given.
Addresses or investors are placed in these groups based on the total number of coins they hold in their balance. The group of coins 1 to 10, for example, includes all owners who own between 1 and 10 XRP.
The whale group is interested in the context of the current article. Whales often refer to it businesses carrying between 10 and 100 million XRP. At the current exchange rate, the low end translates to $5.8 million, and the high end to $58 million.
In general, the impact of any company on the market increases with the additional controlling stake, so these investors, who obviously have the largest stakes, can be among the most powerful. That said, their individual moves may not be relevant to cryptocurrency, but the group’s collective behavior can cause ripples in the market. If nothing else, watching the team can at least give you an idea of ​​what the feeling is between these great hands.
Below is a chart shared by an analyst, showing the trend in XRP Supply Distribution especially whales over the past few months.
The value of the metric appears to have been climbing in recent days | Source: Santiment on X
As the graph shows, XRP whales have seen their collective holdings explode recently. These investors have added a total of 380 million XRP (about $223 million) to their wallets in the past ten days.
The most aggressive part of this buying came when the stock was trading at the $0.53 level, suggesting that whales think the stock presents a profitable buying opportunity.
And indeed, immediately after this rally, XRP started up 10%. From the chart, it is clear that the buying of whales again fueled the supply increase in the first third of August.
Whales have continued to pick up more coins over the past few days, so it is possible that the cryptocurrency will see a continuation of the rally in the near future.
The change in the Supply Distribution of the whales, however, would be to keep an eye on, as it could spell a bearish result for the token instead, because it would mean that the whales are now selling.
XRP price
At the time of writing, XRP is trading around $0.587, up nearly 4% over the past week.
Looks like the price of the coin has been heading up in the past few days | Source: XRPUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com