$XRP In recent days, XRP whales, or institutional investors, have increased their holdings by 453.3 million tokens. This naturally raises one question: Is a major announcement or something similar on the horizon?
Why are institutional investors buying XRP now?
Since the US presidential election, the XRP price has increased by over 100 percent. On November 16, the price reached a monthly high of $1.12. Currently, the price is $1.09, which is still 67 percent below the last bull run high of $1.83 from April 14, 2021.
Institutional investors often increase their investments when they are convinced of upcoming positive developments. Some speculate about a possible partnership between Goldman Sachs and Ripple, the company behind XRP. According to reports, Goldman Sachs plans to establish a company that uses blockchain technology for digital assets. However, whether a collaboration with Ripple is planned remains unconfirmed.
Ripple Labs was founded in 2012 and developed the XRP Ledger, an open-source protocol for fast and cost-effective transactions. XRP serves as a bridge currency to make cross-border payments more efficient. In recent years, Ripple has been in the spotlight due to a lawsuit with the US Securities and Exchange Commission (SEC), which was partially decided in favor of Ripple in July 2023.
The recent accumulation of 453.3 million XRP tokens by whales is the largest in at least three years. Such movements can indicate upcoming market changes, as institutional investors often have insider knowledge or anticipate developments. On the other hand, XRP has been in an overarching downtrend since 2017, and many experts expect XRP to form a lower high in this bull run. This would mean that XRP may have already seen its high. However, institutional investors do not seem to believe that.
Source: wallstreet-online
