Despite the recent significant price decline of XRP in the wider crypto market, on-chain transaction data indicates that large holders, or ‘whales,’ are taking advantage of the lower prices to accumulate more tokens on various exchanges.
Recent data from the whale transaction tracker Whale Alerts reveals an intriguing accumulation pattern among XRP holders. Within the past 48 hours, there have been multiple instances of substantial XRP transfers to and from various exchanges, with the majority involving moving significant amounts of XRP into private, unknown wallets.
Notable Transactions
One noteworthy transaction recorded was the transfer of 26.69 million XRP tokens worth $13.6 million from Binance to a private wallet identified as “rhWj9g.” This is part of a broader trend where a cumulative total of 157 million XRP tokens, valued at approximately $75.16 million, have been moved from exchanges into private wallets within the past 24 hours.
While most transfers have been for accumulation purposes, there have been instances indicating a selloff trend, such as the movement of 31.7 million XRP tokens, valued at $15.1 million, into Bitstamp from a private wallet. This contrasts with the overall accumulation trend observed by Whale Alerts.
Data from Whale Alerts over a 48-hour period shows a cumulative accumulation of 228.54 million XRP tokens worth $108.78 million from exchanges into private wallets. This strategic buying by whales may signal a future price recovery, as historically, significant buy-ins from large holders have led to market upswings.
Following the recent price drop that saw XRP fall from $0.653 to $0.438 in just five days, the cryptocurrency entered the oversold region on the Relative Strength Index (RSI). However, XRP has since recovered some losses, with the RSI indicator reflecting an increase in buying momentum as investors re-enter the market.
Current Price and Resistance
At the time of writing, XRP is trading at $0.5016, representing a 7.11% increase over the past 24 hours. This recovery has brought XRP back to a critical resistance and support level around the $0.5 mark, a price point that has historically acted as both a floor and a ceiling for the cryptocurrency.
XRP whales are capitalizing on the price downturn to accumulate more tokens, as evidenced by significant transfers from exchanges to private wallets. This accumulation trend could potentially signal a future price recovery, supported by historical market dynamics. Investors are closely monitoring whale activity and market reactions as XRP continues to navigate volatile price movements within the crypto market.
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