Recent on-chain data indicates that XRP whales have been on a large-scale buying spree. This activity could potentially signal a bullish trend for the cryptocurrency’s price in the near future. The increase in large-scale holdings by these influential investors often indicates significant market movements.
XRP Whales Expanding Their Holdings
As highlighted by analyst Ali Martinez in a recent post on X, XRP whales have shown notable net expansion over the past ten days. The on-chain metric of importance here is the “Supply Distribution” from the analytics firm Santiment. This metric reveals the amount of XRP that different wallet groups are currently holding.
Wallets or investors are categorized into cohorts based on the number of coins they hold. For instance, the 1 to 10 coins group includes all holders with between 1 and 10 XRP. In the context of this discussion, the whale cohort is particularly interesting. Whales are typically entities holding between 10 million and 100 million XRP. At the current exchange rate, this range translates to a minimum of $5.8 million and a maximum of $58 million.
Generally, the market influence of any entity increases with the amount of supply they control. Therefore, these investors with substantial holdings are among the most powerful. While individual moves by these whales may not significantly impact the market, the collective behavior of this group certainly can. Monitoring this group provides valuable insights into the sentiment among these large holders.
Recent Trends in XRP Supply Distribution
The chart shared by the analyst shows the trend in XRP Supply Distribution, specifically for whales, over the past few months. Recently, the combined holdings of XRP whales have surged. These investors have added a net 380 million XRP (approximately $223 million) to their wallets over the last ten days.
The most aggressive part of this buying spree occurred while the asset was trading around the $0.53 level, indicating that whales considered it a profitable buying opportunity. Indeed, shortly after this accumulation, XRP embarked on a 10% recovery run. The chart also shows that whale buying similarly fueled the asset’s surge in early August.
With whales continuing to accumulate more coins in recent days, it’s plausible that the cryptocurrency might experience a continued rally in the near future. However, a reversal in the Supply Distribution of whales is worth monitoring, as it could indicate a bearish outcome if these large holders start selling.
Current XRP Price
At the time of writing, XRP is trading around $0.587, marking an increase of almost 4% over the last week. The price of the coin has been trending upwards in recent days, reflecting the ongoing buying activity by whales.
In conclusion, the recent buying spree by XRP whales is a significant development that could signal a bullish trend for the cryptocurrency. Investors and analysts should keep a close eye on the behavior of these large holders to gauge future market movements.
