- XRP whale activity hits new all-time high.
- Ripple Whales have purchased 160 million XRP tokens worth $380 million.
Since hitting a local low of $1.5 a week ago, Ripple [XRP] has seen a sustained rally with a six-year high at $2,875.
At the time of writing, XRP was trading as high as $2.74. This represented an increase of 89.17% compared to the previous week. On the monthly charts, the altcoin has risen by as much as 445.05%.
Recent market conditions have analysts and all major players wondering what is driving the rally. One factor that stands out from this rally is an increase in whale activity.
XRP whale activity hits all-time high
In his analysis, Cryptoquant analyst Kriptolik noted that XRP whale activity has reached an all-time high.
Source: Cryptoquant
According to him, the altcoin has never attracted the attention of whales to this extent since its launch. Thus, this renewed interest among large holders indicates that XRP has now been embraced by whales as a valuable asset.
Source:
As such, whales have been actively gathering over the past week. These Whales Bought Another 160 Million XRP Tokens Worth $380 Million Over the Weekend, According to Ali Martinez’s analysis of Santiment.
When whales start to accumulate, it indicates that the market has a lot of confidence in an asset and sees huge potential.
Source: Santiment
This market confidence and interest among whales was mainly reflected in the increase in the number of whale transactions ($100,000). Over the past week this has risen from a low of 187 to a high of 1806 at the time of writing.
Impact on price charts?
Normally, increased whale activity has potential implications for the price direction of an asset. When whales are sold, this tends to increase selling pressure, causing prices to fall.
On the other hand, if the number of whales piles up, it will result in a supply squeeze, potentially driving up prices.
In this case, with XRP growing to become the third largest cryptocurrency by market cap, it would be true to say that this whale activity is mainly accumulation.
Source: Cryptoquant
This was supported by a reduced whale to exchange transactions. So while whales engage in the market, their trades are not sent to exchanges but outside of them. Such market behavior points towards an accumulation trend.
Read Ripple [XRP] Price forecast 2024-2025
Simply put, XRP is currently experiencing strong market favorability and bullish sentiment among all participants, including whales. These market conditions could see the altcoin making more gains on price charts.
Now that there is a strong uptrend, the next short-term target for XRP is $3.