According to CoinDesk, XRP has experienced a remarkable 430% increase in the past 30 days, reaching price levels not seen since 2018. This surge has caught many traders on Crypto Twitter by surprise. The upward trend began in early November, following the Republican victory in the U.S. elections, which boosted investor confidence in tokens associated with U.S. companies, including Ripple Labs, the company linked to XRP.
Large holders, often referred to as 'whales,' have played a significant role in this price movement. Data from CryptoQuant indicates that whale activity, which monitors the movement of large wallets to and from exchanges, has been consistently high over the past month. This activity is significantly higher than any other period, suggesting that whales are exerting considerable influence on the market. Whales can impact the market through their buying or selling pressure, and tracking their movements can provide insights into market sentiment.
For example, if there is a substantial inflow of cryptocurrency into exchanges, it might suggest that whales are preparing to sell, potentially indicating a bearish market trend. Conversely, large outflows from exchanges might suggest that whales are accumulating, which could be a bullish signal. However, such whale movements often coincide with local price peaks, as noted by CryptoQuant's contributing analyst, Woominkyu. In a recent post, Woominkyu explained that significant spikes in whale-to-exchange transactions typically align with XRP price peaks, suggesting that whales tend to sell large amounts of XRP near local or cycle tops.
The latest increase in whale-to-exchange activity coincides with XRP reaching a local price of approximately $2.3. This could indicate that whales are preparing for potential profit-taking or increased market activity. Over the past 24 hours, XRP has risen by 14%, outperforming bitcoin and other major cryptocurrencies. As of Tuesday, XRP has surpassed Solana’s SOL and tether (USDT) in market capitalization, making it the third-largest token by market cap.
