In the last 24 hours, the cryptocurrency market has witnessed significant downward pressure. Following Bitcoin’s drop to $95k, most alternative coins have shown a decline, and XRP was not an exception. Ripple’s XRP has sharply dropped to a low of $2.15 during this period.
This decline has presented an opportunity for investors, notably whales, who have taken advantage of this dip by purchasing more XRP tokens.
Notable Increase in Whale Buying Activity
Analyzed by Ali Martinez, it has been observed that Ripple’s major holders have been accumulating XRP after the recent market downturn.
These whales have acquired an additional 110 million XRP tokens valued at $242 million. Such significant purchases by large holders indicate a positive outlook on the XRP market’s future.
There has been a surge in buying activity over the past 48 hours, depicted by the Taker buy-sell ratio. This ratio, previously at 0.91, has now shifted to 0.93, hinting at buyers entering the market following increased selling pressure in the preceding days.
This shift from more selling pressure to heightened buying indicates that investors are optimistic and view the current XRP prices as favorable for re-entering the market.
How Does This Impact XRP Price Movement?
Usually, a rise in buying pressure, particularly among significant holders, has a positive effect on asset prices.
However, XRP faced significant downward pressure and was trading at $2.28 at the time of writing, reflecting a 2.82% decline on the daily chart and a 2.72% drop on the weekly chart.
The recent dip led to panic selling, as shown by the increase in the exchange supply ratio, which rose to 0.029, indicating an uptick in inflow to exchanges.
There is a trend of more tokens being moved to exchanges rather than withdrawn, suggesting that investors are either selling or preparing to sell.
There has been a noticeable decrease in market activity, with active addresses dropping from 59,561 to 44.1k. This decline raises concerns of the altcoin being overvalued, potentially leading to a further decline in its price trajectory.
In summary, despite continuous purchases by whales, bearish sentiment is currently dominant, with bullish momentum waning and downward pressure increasing.
If this sentiment persists, XRP may experience further declines, potentially reaching $2.20 in the short term. Nonetheless, the increased buying from whales could support XRP in revisiting the $2.35 mark.