XRP whales are taking advantage of the price drop to collect more tokens. XRP recently hit a low of $0.438 in the wake of a intense sell-off in the broader crypto market, where the value of many cryptocurrencies fell sharply. This intense sale resulted in a drama 20% drop in the price of XRP within a 24 hour time frame.
Despite this sharp decline, on-chain transaction data shows that some large holders, often referred to as “whales,” are undeterred. These investors are taking the opportunity presented by the lower prices to accumulate more XRP on various exchanges.
Whales are buying millions of XRP
Recent data from whale transaction tracker Whale Alerts reveals an intriguing accumulation pattern among XRP holders. Over the past 48 hours, Whale Alerts has noted multiple instances of substantial XRP transfers to and from various exchanges. The majority of these transfers move significant amounts of XRP from crypto exchanges to private, unknown wallets.
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The last major transaction recorded, the transfer of 26.69 million XRP tokens worth $13.6 million from the Binance exchange to a private wallet identified as ‘rhWj9g’. This transaction is part of a broader trend observed by Whale Alerts, which highlights a cumulative total of 157 million XRP tokens, worth approximately $75.16 million, moved from crypto exchanges to private wallets in the past 24 hours . Interestingly, most of these transfers came from Binance.
Interestingly, the data also indicates a likely sell-out transaction, where 31.7 million XRP tokens, worth $15.1 million, were transferred to Bitstamp from a private wallet. This movement contrasts with the general trend of accumulation, indicating that not all whales are accumulating.
Expanding the time frame to the last 48 hours, Whale Alerts data reveals a cumulative accumulation of 228.54 million XRP tokens worth $108.78 million from private wallet crypto exchanges.
Quick rebound for price?
This clump of whales could indicate one future price recovery, as significant buy-ins from large holders often lead to market upswings. The strategic purchases in the context of the price drop demonstrate confidence that the current downturn is a temporary setback.
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Recent price action saw the cryptocurrency drop from $0.653 to $0.438 in the space of five days, effectively wiping out the gains it made in July. This drastic price drop caused the cryptocurrency to enter oversold territory on the Relative Strength Index (RSI).
XRP has managed to recoup some of its losses. The RSI indicator now reflects a increase in purchasing momentumindicating that investors are starting to re-enter the market.
At the time of writing, the altcoin is trading at $0.5016, reflecting an increase of 7.11% in the last 24 hours. This recovery has XRP bto a crucial multi-month period resistance and support level around $0.5, a price that has historically been both a floor and a ceiling for the cryptocurrency. This price point has proven to be a significant threshold, one that XRP has struggled to escape for quite some time.
Featured image from CoinMarketCap, chart from TradingView.com