The price of the native token of the XRP Ledger has risen by more than 37% over the past month and that rise has seemingly also been accompanied by a rise in the number of whale wallets holding XRP, which “skyrocketed” over the past 5 weeks.
According to data from on-chain analytics firm Santiment, there has been a dramatic increase in the number of wallets holding at least 10,000 XRP. This metric, often seen as a barometer of investor sentiment, has reached a six-month high, with nearly 280,000 addresses now qualifying as so-called “whale” wallets.
🐳🦈 The amount of wallets holding at least 10K XRP has skyrocketed in the past 5 weeks. 279.4K such shark & whale addresses exist on the ledger, returning to a 6-month high. The correlation between these wallets and XRP's market value has been undeniable throughout 2024. 👍 pic.twitter.com/JRT3629sJH
— Santiment (@santimentfeed) July 30, 2024
The correlation between the accumulation of XRP by these high-net-worth investors and the token’s price has been “undeniable” throughout 2024 according to the firm, suggesting a bullish outlook for the cryptocurrency.
It comes shortly after Santiment also flagged several altcoins including the meme-inspired cryptocurrency Shiba Inu, Cardano’s native token ADA, and XRP as having potential to bounce back based on a key technical indicator suggesting these cryptocurrencies are currently undervalued.
The matric, the Market Value to Realized Value (MVRV) Z-Score, was reportedly created by Awe & Wonder building on the work of Murad Mahmudov and David Puell, and measures the difference between the cryptocurrency’s total market capitalization and its realized market capitalization divided by the standard deviation of the market cap.
The MVRV Z-score indicator shows by how many standard deviations the market value differs from the realized value. It indicates whether investors are making a profit, with scores above 7 suggesting a high probability a bubble has formed, while scores below zero suggest the market is bleeding.
Assets with a low MVRV Z-Score, indicating potential undervaluation, include Uniswap, Shiba Inu, Cardano, XRP, Polygon, and Chainlink. While these assets experienced the “most pain”, Santiment argues they could be primed for a rebound if the market enters a sustained uptrend.
Featured image via Unsplash.
