As the crypto market experiences a resurgence, XRP is among the cryptocurrencies that are benefiting from positive market conditions. This upturn has led to a boost in investor sentiment, particularly among large investors. The past year has been challenging for XRP, with continuous selling pressure causing the price to struggle. Despite legal battles with the SEC, Ripple managed to secure partial victories, but this did not prevent investors from exiting their positions. Specifically, investors holding at least 1 million XRP tokens, known as the dolphins and whales, felt the impact of the price decline.
The cohort of XRP holders with at least 1 million tokens reached an all-time high in June 2023. However, as the price of XRP declined, these large holders started selling their holdings, resulting in a reduction in the number of wallets holding significant amounts of XRP. The market sentiment began to shift as the overall cryptocurrency market entered another bull cycle. This shift prompted large investors to re-enter the XRP market. Data from Santiment revealed a steady increase in the number of wallets holding 1 million tokens or more throughout 2024. By April, the count stood at 2,013 wallets, just one wallet shy of the previous all-time high.
One possible reason for the return of large investors to XRP is the emergence of bullish indicators for the altcoin. Following a market crash that saw XRP and other altcoins plummet by nearly 40%, investors saw an opportunity to accumulate tokens at a discounted price. Crypto analyst TonyTheBull highlighted the significance of this price crash, likening it to a final capitulation shakeout for XRP. Drawing parallels to a similar event in 2017, TonyTheBull suggested that XRP could be poised for a major rally.
As large investors continue to accumulate XRP, there is speculation that the altcoin could experience a significant price rally akin to the one seen in 2017. If history repeats itself, XRP’s price could surge past $1, delivering substantial returns for investors. The current price trend suggests a movement towards $0.6, indicating growing bullish momentum for XRP. With the potential for a massive rally on the horizon, large investors seem poised to reap the rewards of their strategic buy-ins.
The return of large investors to XRP signals a shift in market sentiment and the emergence of bullish indicators for the altcoin. As the crypto market heats up and investor interest in XRP grows, the stage is set for a potential price rally that could yield significant returns for those who remain invested in the digital asset.