After hitting a low of $1.5 just a week ago, Ripple’s XRP has seen a remarkable surge, reaching its highest level in six years at $2.875.
Currently, XRP is trading at $2.74, showing an impressive increase of 89.17% over the past week. Looking at the monthly charts, the altcoin has soared by an astonishing 445.05%.
The recent surge in XRP’s price has led analysts and major players to question the driving force behind this rally. One significant factor that has emerged during this uptrend is the heightened activity of large investors, known as whales.
Unprecedented Surge in XRP Whale Activity
In an analysis by Cryptoquant expert Kriptolik, it was noted that the activity of XRP whales has reached an all-time high.
According to the expert, never before in the history of the altcoin have whales shown such keen interest. This increased attention from major holders indicates a newfound recognition of XRP as a valuable asset by whales.
Throughout the past week, these whales have been actively accumulating XRP. Reports suggest that over the weekend alone, whales acquired an additional 160 million XRP tokens, valued at $380 million, as per Ali Martinez’s Santiment analysis.
When large investors start accumulating an asset, it implies strong market confidence and hints at significant growth potential.
How Does Whale Activity Impact Price Trends?
Generally, the level of whale activity can influence the direction of an asset’s price movement. When whales start selling, it often results in increased selling pressure, leading to price declines.
Conversely, when whales engage in accumulation, it creates a shortage of supply, potentially driving prices up.
In the case of XRP, which has climbed to become the third-largest cryptocurrency by market capitalization, the prevailing whale activities seem to be centered around accumulation.
This notion is supported by a decline in the number of whale-to-exchange transactions, indicating that while whales are actively involved in the market, they are moving their assets off exchanges. Such behavior typically signifies an accumulation phase.
To put it simply, XRP is currently enjoying significant market support and positive sentiment from all participants, including whales. These market dynamics could pave the way for further price gains for the altcoin.
With a strong upward trajectory established, the next short-term price target for XRP is set at $3.