Although the XRP price has witnessed a decline along with the overall crypto market since the beginning of October, recent price action shows XRP is consolidating in the $0.5 support level, suggesting the early stages of a rebound may be brewing. In addition to this, on-chain data has revealed some whales are expanding their holdings in preparation for the rebound.
Large XRP Transactions Hint At Accumulation
Various on-chain data has shown large XRP transactions in the past few weeks to and from exchanges, suggesting some whales might be accumulating XRP tokens.
According to data from Whale Alerts, a crypto whale tracking service, 50 million XRP worth $24.8 million was recently transferred from Crypto.com to a private wallet.
50,000,000 #XRP (24,894,598 USD) transferred from #CryptoCom to unknown wallethttps://t.co/f2Zrx9pLf3
— Whale Alert (@whale_alert) October 9, 2023
Whatever the reasons, massive XRP transactions like this are worth paying attention to as they can either increase or decrease buying and selling pressure.
— Whale Alert (@whale_alert) October 9, 2023
While there have been other whale movements from private wallets to exchanges, data from the crypto analytics platform Santiment points to an accumulation tactic from XRP whales. A metric that follows the balances of wallets holding between 100,000 to 1 million XRP has significantly increased since the beginning of the month.
In this last 7-day timeframe, the net cumulative balance in these wallets increased by 60 million XRP tokens from 3.77 billion to 3.83 billion. XRP is currently trading at $0.499, putting the net increase of these whales at $29.9 million.
Price recovers as whales accumulate | Source: XRPUSD on Tradingview.com
What’s Next For XRP Price – Potential Impact
Interest in the XRP price is now at one of its highest levels, and according to financial analysts, the cryptocurrency is leading the charge in upending the conventional payments sector. The number of XRP holders has also steadily been on the rise, as news about Ripple and the SEC has continued to generate attention for XRP.
Data from Santiment below shows this measure is now at 4.8 million wallet addresses:
Whales increase their holdings | Source: Santiment
The XRP price is down by 2.11% in the past 24 hours, but trading volume increased by 56.53%. Higher volume means there is more activity and interest in an asset, which can indicate a price spike. However, bulls have failed to hold the $0.50 support zone, and XRP might continue to move down if it breaks below $0.488.
With whales accumulating, key support levels holding, and the SEC lawsuit progressing in Ripple’s favor, there might be a bullish reversal for XRP. According to one analyst, XRP could rise 1137% to a new to a new all-time high of $5.85.
Featured image from Crypto News Flash, chart from Tradingview.com
