In the world of crypto, the actions of large investors, known as whales, can often provide valuable insights into the market sentiment surrounding a particular digital asset. Recent data has revealed a common trend in the XRP market, as whales have been actively accumulating millions of tokens over a short period, particularly in the last three weeks.
Whales Show Bullishness On XRP
According to data shared by renowned crypto analyst Ali on Twitter, whales are making significant moves in the XRP market. Utilizing behavior analytics resource Santiment’s data, Ali highlighted the noteworthy accumulation of XRP by whales, which indicates their strong belief in the future prospects of the token.
Over the past three weeks alone, these prominent investors have acquired 52 million XRP, representing an estimated value of over $22 million.
Notably, the accumulation trend has been primarily observed among XRP whales, specifically addresses holding 10 million to 100 million XRP. This period of intense accumulation began on May 7, following a notable selloff pressure that occurred on April 12.
During the selloff phase, Ripple’s token experienced a prolonged consolidation period, stemming from the temporary exhaustion of the rally before the latest move. However, the selloff eventually subsided, paving the way for the current accumulation trend witnessed among whales.
What Drives The Accumulation
The sudden surge in XRP accumulation by whales has raised questions about what factors could be driving this bullish sentiment. While individual motivations may vary, several plausible explanations shed light on the underlying dynamics at play.
One significant factor could be the anticipation of positive developments within the Ripple ecosystem, such as new partnerships or advancements in the adoption of Ripple’s token for cross-border transactions.
Last month, Ripple (XRP), Cardano (ADA), and several other cryptocurrencies received an adoption boost through a recently announced partnership between Binance Pay and CoinGate. This collaboration enables users of Binance Pay to make crypto payments to merchants powered by CoinGate. In turn, CoinGate merchants can facilitate Binance Pay payments during the checkout process.
Notably, such developments often drive demand for Ripple’s token, prompting investors to accumulate the token in anticipation of future price appreciation. Furthermore, the recent regulatory clarity surrounding Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) may have also contributed to the increased confidence among whales.
As Ripple continues to make progress in the legal proceedings, the resolution of the case could potentially remove a major overhang on XRP’s market sentiment, paving the way for renewed optimism and investment.
Meanwhile, following the accumulation of whales, XRP has shown an upcoming uptick. Over the past 24 hours, Ripple’s token has seen a 1% gain. The asset currently trades at $0.47, at the time of writing.
-Featured image from Unsplash, Chart from TradingView