During a phase of price consolidation and rising bearish sentiment, large XRP investors, known as “whales,” have been actively accumulating the cryptocurrency.
This accumulation reflects sustained confidence in XRP’s long-term potential among major holders. The trend could set the stage for a breakout, allowing XRP to target its multi-year high of $2.90.
XRP Whales Fill Their Wallets
Over the past week, XRP has been trading in a tight range. The price faced resistance at $2.62 and found support at $2.20. At the time of writing, the altcoin is trading at $2.34, hovering above this key support level.
XRP’s sideways movement and weakening bullish sentiment have prompted a group of large investors holding between 100 million and 1 billion XRP tokens to seize the opportunity to accumulate a significant amount of the cryptocurrency.
According to Santiment, this group of investors has collectively added approximately 590 million XRP to their holdings over the past seven days, which translates to a value of around $1.29 billion. Currently, this group of XRP investors holds 8.91 billion tokens.
XRP Supply Distribution. Source: Santiment
This trend of whale accumulation signals strong confidence in the future price of XRP. As large holders accumulate more XRP, it could create upward pressure on the market, leading to potential price rallies as smaller investors react to the activity.
Despite XRP’s limited price movements, derivatives traders remain optimistic about a rally, as evidenced by the altcoin’s positive funding rate, currently at 0.008%.
Additionally, the funding rate represents the periodic rate exchanged between traders to align the contract price with the spot price. A positive funding ratio indicates that long position holders are paying short position holders, reflecting a market bias toward bullish sentiment.
XRP Financing Tax. Source: Santiment
XRP Price Prediction: Why Accumulation Should Continue
XRP is trading at $2.34, holding slightly above the support level at $2.20. If retail investors increase their accumulation, the price could rise towards the resistance at $2.62. However, a successful breakout above this level could take XRP to $2.90, a peak last seen in 2018.
XRP Price Analysis. Source: TradingView
However, if accumulation by whales subsides and bearish sentiment strengthens, XRP price will break below $2.20 and drop to $1.95.
The article XRP Investors Accumulate 1.29 Billion Tokens appeared first on BeInCrypto Brasil.
