Data from the chain shows that the XRP whales purchased 71 million coins in the past week, even as the asset’s price fell.
XRP whales have been increasing their holdings lately
In a new after on X, analyst Ali Martinez discussed the latest trend in whale supply on the XRP network. ‘Whales’ refer to the entities that hold a significant portion of assets in their portfolio balance.
These investors can exert some influence on the market thanks to their large holdings, so their behavior can often be worth keeping an eye on. The whales’ movements may not always directly impact ownership, but they can still be revealing about the sentiment present among them.
There are many ways to monitor the whales’ behavior, including through their belongings. Below is the chart shared by Martinez showing the supply trend of the major XRP holders.
As visible in the chart, the XRP whales have recently expanded their holdings. More specifically, these giant investors have added more than 71 million tokens of the cryptocurrency (currently worth approximately $97.8 million) to their offerings over the past week.
Interestingly, this whale accumulation wave has come about while the price of the asset has fallen by over 8% within the same period. Given this timing, it’s possible that the cash-rich hands will see the dip as a lucrative opportunity to buy more XRP. However, it remains to be seen whether this bet by the Whales will pay off.
In other news, XRP may be gearing up for a volatile move, as the analyst highlighted in another after. The indicator cited by Martinez is the Bollinger Bands, a tool generally used to measure the volatility of an asset.
There are three bands in the indicator: a central line of the 20-day moving average (MA) and two levels on either side of it that correspond to certain standard deviations up and down.
The chart shows that the Bollinger Bands have recently pinched around the three-day XRP price. This suggests that the cryptocurrency has experienced outdated price action. According to the analyst, the current pressure on statistics is the tightest in more than a year. “When volatility is compressed so much, it’s a signal that a violent price increase is coming,” Martinez said.
XRP price
XRP briefly crossed the $0.54 mark a week ago, but the coin has since seen a notable decline as its price has returned to $1.37.