During a phase of price consolidation and increasing bearish sentiment, large XRP investors, known as “whales,” have been actively accumulating the cryptocurrency.
This accumulation reflects sustained confidence in XRP’s long-term potential among major holders. The trend could set the stage for a breakout, enabling XRP to target its multi-year high of $2.90.
XRP Whales Fill Their Bags
Over the past week, XRP has traded within a narrow range. Its price has faced resistance at $2.62 and has found support at $2.20. As of this writing, the altcoin exchanges hands at $2.34, hovering above this key support level.
XRP’s sideways movement and waning bullish sentiment have prompted a group of large investors who hold between 100 million and 1 billion XRP tokens to seize the opportunity to accumulate a significant amount of the cryptocurrency.
Per Santiment, this cohort of investors has collectively added approximately 590 million XRP to their holdings over the past seven days, translating to a value of around $1.29 billion. Currently, this group of XRP investors holds 8.91 billion tokens.
This trend of whale accumulation signals strong confidence in XRP’s future price. As large holders accumulate more XRP, it can create upward pressure on the market, leading to potential price rallies as smaller investors react to the activity.
Despite XRP’s limited price movements, derivatives traders remain optimistic about a rally, as evidenced by the altcoin’s positive funding rate, currently at 0.008%.
The funding rate represents the periodic fee exchanged between traders to align the contract price with the spot price. A positive funding rate indicates that long position holders are paying short position holders, reflecting a market bias toward bullish sentiment.
XRP Price Prediction: Why Accumulation Must Continue
XRP is trading at $2.34, holding slightly above the support level at $2.20. If retail investors increase their accumulation, the price could rise toward the resistance at $2.62. A successful breakout above this level may push XRP to $2.90, a high last seen in 2018.
However, if whale accumulation wanes and bearish sentiment strengthens, XRP’s price will break below $2.20 and fall to $1.95.
Disclaimer
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