In the midst of a significant price downturn that saw XRP hitting a low of $0.438, large holders of XRP, known as ‘whales’, have been actively taking advantage of the lower prices to accumulate more tokens. Despite the sharp decline of 20% within a 24-hour period, on-chain transaction data indicates that these whales are not deterred by the market volatility.
Recent data from the whale transaction tracker Whale Alerts highlights an interesting accumulation pattern among XRP holders. Over the past 48 hours, there have been multiple instances of substantial XRP transfers to and from various exchanges. The majority of these transfers involve moving large amounts of XRP into private, unknown wallets from crypto exchanges.
One of the most notable transactions recorded was the transfer of 26.69 million XRP tokens worth $13.6 million from Binance to a private wallet known as “rhWj9g.” This is just one example of a broader trend observed by Whale Alerts, which indicates a cumulative total of 157 million XRP tokens, valued at approximately $75.16 million, being moved from exchanges into private wallets within a 24-hour period.
The strategic accumulation of XRP by whales could potentially signal a future price recovery. Historically, significant buy-ins from large holders have often led to market upswings. Despite the recent price slump that saw XRP dropping from $0.653 to $0.438, the recovery to $0.5016 reflects a 7.11% increase over the past 24 hours.
The current price level of $0.5016 brings XRP back to a crucial multi-month resistance and support level around the $0.5 mark. This price point has historically acted as both a solid floor and ceiling for the cryptocurrency, indicating the significance of breaking away from this threshold.
The activity of XRP whales during price downturns provides valuable insight into market sentiment and potential future price movements. The strategic accumulation of XRP tokens by these large holders could serve as an indication of confidence in the cryptocurrency’s long-term value. As the market continues to evolve, monitoring whale activity and its impact on price dynamics will be essential for investors and traders alike.