The recent fluctuations in Ripple’s XRP price have caught the attention of investors, with large investors in particular taking a strategic approach by taking advantage of market declines.
Despite the declines, on-chain data shows a strong accumulation trend among large investors, which is considered a sign of a strategic investment opportunity for the market.
According to analysts, “large investor accumulation during downturns often follows significant price recoveries,” which highlights the potential bullish sentiment around XRP.
The accumulation of large investors is helping Ripple’s XRP price stabilize, suggesting the start of a recovery process after recent declines.
According to blockchain analysis, there has been a significant increase in XRP balances held in large wallets. This trend, evidenced by Whale Holdings Distribution data, shows that addresses holding between 1 million and 100 million XRP are actively accumulating tokens.
This accumulation period has accelerated in parallel with the decline in the XRP price, reflecting purchases by large investors, typically at low prices. The movements of these investors in the market are often indicative of confidence in the long-term potential of the asset. Historically, large investor accumulation trends in bear markets have often been a precursor to price recoveries. The large investor activity currently observed indicates increasing confidence in XRP’s potential recovery, and investors are taking strategic positions in anticipation of market changes.
XRP has formed a strong support level around $2.32, with the accompanying 50-day Moving Average (MA) sitting at $1.59. Maintaining these critical support levels is a key factor for the bullish sentiment to continue.
The asset’s price is struggling at the $2.46 Fibonacci retracement level, but continued stability above key moving averages is generating positive sentiment among traders. XRP’s trading volume remains strong, suggesting continued investor interest. Large investor accumulation and reduced selling activity are leaving XRP in an advantageous position as it approaches critical resistance levels, paving the way for a potential recovery.
According to the latest analysis, Santiment’s 30-day MVRV (Market Cap/Realized Value) ratio has dropped to around 5.91%, indicating a reduced tendency to take profits among investors who have recently purchased XRP.
A low or neutral MVRV ratio is consistent with the observed accumulation trend of large investors, reducing short-term selling pressure. The combination of decreasing selling pressure, increasing large investor movements, and solid support levels is creating cautious optimism for XRP. While resistance at $2.46 still holds, these indicators could generally reinforce a price recovery in the near future.