Massive On-Chain Activity for XRP Indicates Increased Interest from Large Investors
XRP has experienced a relatively quiet price performance recently, but new data reveals significant on-chain activity for the altcoin in the past week. Large investors have taken advantage of the cryptocurrency’s sluggish performance to increase their portfolios.
Whales Buy $7 Million Worth of Tokens – Potential Impact on Price?
Crypto analyst Ali Martinez has highlighted substantial whale activity in the XRP market. According to data from Santiment, these large investors purchased approximately 11 million tokens, worth around $6.82 million, in the last seven days.
The chart below illustrates a significant increase in the holdings of XRP whales, particularly those holding between 100,000 to 10 million tokens.
This surge in whale activity indicates growing interest among major holders and large investors. Such significant buying activity could potentially lead to a price rebound for XRP.
Potential Price Impact Questioned Amidst Whale Transfers to Exchanges
However, recent blockchain data suggests that a price upswing may be unlikely. A particular whale transferred a substantial amount of XRP tokens to crypto exchanges in the past week.
25,000,000 #XRP (15,553,036 USD) transferred from unknown wallet to #Bitso
— Whale Alert (@whale_alert) November 23, 2023
According to Whale Alert data, over 50 million XRP tokens (worth approximately $31 million) were moved to centralized exchanges. One major holder transferred 25 million coins to Bitstamp, and another 25.2 million tokens were sent to Bitso.
— Whale Alert (@whale_alert) November 23, 2023
These transfers to centralized exchanges have raised bearish sentiment among XRP investors. Historically, such transactions precede selloffs, leading to speculation about a potential dip in the cryptocurrency’s value.
XRP Price Overview
Currently valued at $0.621711, XRP has seen a marginal 0.4% price increase in the past 24 hours. Its performance over the week has also been relatively unremarkable, with a 1.7% price jump according to CoinGecko data.
Nevertheless, XRP appears to be recovering well after the ETF controversy that negatively impacted its price. With a market capitalization of approximately $33.4 billion, XRP remains the fifth-largest cryptocurrency.
Hot Take: XRP Whale Activity Indicates Potential Price Rebound
The recent surge in on-chain activity by large investors and whales in the XRP market suggests growing interest and the possibility of a price rebound. However, concerns arise as significant amounts of XRP tokens have been transferred to centralized exchanges, triggering bearish sentiment. This type of transaction has historically preceded selloffs and raised speculation about a potential dip in XRP’s value. As of now, XRP’s price has shown minimal growth over the past week, but it is recovering well from the recent ETF controversy. With its position as the fifth-largest cryptocurrency by market capitalization, XRP remains an important player in the crypto market.
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