Whales are stockpiling billions of Ripple (XRP)
Date: 2024-12-19 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
From December 15 to 18, large Ripple holders significantly increased their positions. Those holding between 1 million and 10 million tokens purchased about 100 million XRP, increasing their holdings to 4.95 billion. Large-asset investors holding between 100 million and 1 billion coins added 870 million tokens. Their combined holdings grew from 8.86 billion to 9.63 billion XRP.
At the current price of XRP, these purchases are equivalent to $2.5 billion. Such activity usually signals an increase in market demand, which many see as a prerequisite for growth.
However, on-chain data suggests that the situation is ambiguous. The Whale to Exchange Flow metric, which tracks token movements between whale wallets and centralized exchanges, has risen from 2,243 to 3,585 in three days. This indicates an increase in the volume of tokens being sent to exchanges, which is often a precursor to selling.
However, the overall balance is still in favor of buyers. If whale activity continues to support the market, XRP may maintain its current growth trajectory.
At the time of writing, XRP is trading at $2.57, down 5% in a day. Technical analysis shows a bull flag pattern forming, which consists of two rallies separated by a period of consolidation. A breakout above the upper line of the flag could lead to a rise in the token to $3.50.
However, if selling intensifies, XRP may fall below the lower line of the flag, which will lead to a drop in the price to $1.98.
The actions of large investors can significantly affect the future movement of XRP. The coming days will reveal whether the token will be able to realize its growth potential or whether selling pressure will change the direction of the market.
