What are the whales expecting when buying 640 million dollars worth of XRP?

XRP-2,94%

XRP is facing many difficulties in maintaining its bounce back in recent days, as the price continuously fails to break through important resistance levels. However, a shift in investor behavior is gradually emerging.

Large investors are increasing their holdings, reflecting a growing confidence that the current price is an attractive opportunity to enter the market.

The trust of XRP holders is increasingly being strengthened

On-chain data shows a significant increase in accumulation activity by whales. In the past 48 hours, addresses holding between 100 million XRP and 1 billion XRP have added approximately 330 million XRP to their portfolios.

The total accumulated value has reached approximately 642 million USD, indicating a strong resurgence in demand from institutional investors.

This move indicates that whales are taking advantage of the low price phase to increase their positions, rather than retreating from the market. Accumulation during the consolidation phase often reflects expectations of a strong bounce back in the future.

This level of demand acts as a structural support, helping to mitigate the risk of price decline and increasing the likelihood of a sustainable bounce back.

What are whales hoping for when buying 640 million dollars of XRP?The amount of XRP held by whales | Source: SantimentMacroeconomic indicators also reinforce a positive outlook for XRP. The “liveliness” index has decreased over the past week, indicating that the movement of XRP in the market is slowing down. This reflects that long-term holders are shifting from a selling state to holding.

A low liveliness index is often a sign of accumulation or holding. In fact, the suspension of selling by long-term holders can also contribute to price stability.

What are whales expecting when buying 640 million dollars worth of XRP?The volatility of XRP | Source: GlassnodeThe reduction in distribution helps absorb short-term fluctuations, facilitating the bounce back when new demand arises.

The Breakthrough Prospects of XRP Price

Currently, XRP is trading around 1.94 USD, just below a downward trend that has persisted for the past month, which has limited the price increase. The immediate bounce back target is the level of 2.02 USD. If this mark is surpassed, the upward trend will be reinforced and market momentum will improve significantly.

The accumulation activity of whales, along with the decreasing long-term selling pressure, is creating favorable conditions for a bullish scenario. If these factors continue to persist, XRP has the potential to surpass the 2.02 USD threshold and move towards the 2.20 USD mark, marking a clear breakout from the current downtrend.

What are the whales expecting when buying 640 million dollars worth of XRP?XRP Price Analysis | Source: TradingViewHowever, the downside risk remains if the bears regain control of the market. If the upward momentum is not maintained, XRP could bounce back to the $1.85 region. In the event that selling pressure continues to increase, the support level of $1.79 will be tested. If this level is breached, the bullish thesis will be invalidated and the short-term downside risk will become more apparent.

Mr. Giáo

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