Data from the chain shows that the total number of sharks and whales on the XRP network has risen sharply recently, a sign that could be positive for the asset’s price.
XRP sharks and whales have recently witnessed a rise in their numbers
This is evident from data from the on-chain analysis company Santimentshark and whale wallets have made a remarkable jump in the past five weeks. The relevance indicator here is the ‘Supply Distribution’, which tells us about the number of addresses that currently belong to a particular portfolio group.
Related reading
The addresses are placed in these cohorts based on the number of coins they currently have in their balance. For example, investors who own between 1 and 10 XRP fall into the 1 to 10 coin group.
In the context of the current discussion, the group of more than 10,000 coins is interesting. The limit for this cohort works out to about $6,500 at the current exchange rate. This amount is not high in itself, but the top end of the group stretches to infinity, so it should also include heavyweight investors like sharks and whales.
The sharks and whales are considered important investors in the market, so their behavior can be monitored as it can ultimately affect the price of the cryptocurrency. Naturally, the whales are the more influential of the two, due to their larger size.
Here is a chart showing the trend in the XRP Supply Distribution for the 10,000+ coin cohort over the past few months:
As shown in the chart above, the XRP Supply Distribution for this portfolio group has seen a rapid increase recently. More specifically, approximately 2,390 addresses of this size have appeared on the network in the past five weeks.
This would indicate that entities such as the sharks and whales have been busy accumulating the cryptocurrency. After the latest increase, the value of the indicator has reached the 279,400 mark, the highest level in about six months.
The chart shows that the value of the indicator had seen a downward trend earlier this year, while the price of the asset also experienced bearish momentum. The indicator bottomed out in April, around the time asset value declines also slowed.
And since the recent uptrend in the supply distribution of sharks and whales has appeared, XRP price has also felt the return of bullish winds. “The correlation between these wallets and the market value of XRP has been undeniable throughout 2024,” Santiment notes.
Related reading
Considering the pattern, this indicator should be monitored in the near future as a continued rise in it could mean a bullish outcome for the cryptocurrency.
XRP price
XRP has rallied around 5% over the past 24 hours, pushing its price to the $0.65 level.
Featured image from Dall-E, Santiment.net, chart from TradingView.com