Whales go on a $223 million buying spree

On-chain data shows that XRP whales have been on a major buying spree recently, a sign that could have a positive impact on the cryptocurrency's price.

XRP whales have been increasing their holdings recently

As analyst Ali Martinez points out in a new post on X, XRP whales have shown significant net expansion over the past ten days. The relevant indicator here is on-chain analytics firm Santiment's “Supply Distribution,” which tells us the amount of XRP a particular wallet group is currently holding.

The addresses or investors are assigned to these cohorts based on the total number of coins they have in their balance. For example, the 1 to 10 coins group includes all holders who own between 1 and 10 XRP.

The whale cohort is of interest in the context of the present topic. Whales typically refer to Companies that own between 10 and 100 million XRP. At the current exchange rate, the low end is $5.8 million and the high end is $58 million.

Generally speaking, the more supply an entity controls, the greater its influence in the market becomes. So these investors, who obviously hold very large stakes, are some of the most powerful. Their individual moves may no longer be relevant to the cryptocurrency, but the collective behavior of the group can certainly make waves in the market. If nothing else, observing the group can at least provide insight into the sentiment among these large players.

Below you can see the chart shared by the analyst showing the trend of XRP supply distribution specifically for the whales over the past few months.

The value of the metric appears to have been climbing in recent days | Source: Santiment on X

As the chart shows, XRP whales' holdings have skyrocketed recently, with these investors adding a net 380 million XRP (around $223 million) to their wallets over the past ten days.

The most aggressive part of this buying spree occurred when the asset was trading around the $0.53 mark, suggesting that whales thought the asset presented a lucrative buying opportunity.

And indeed, shortly after this accumulation, XRP began a 10% recovery run. From the chart, it is clear that whale buying had also fueled the asset's rise in the first third of August.

Whales have continued to accumulate more coins over the past few days, so it is possible that the cryptocurrency’s rally will continue in the near future.

However, a reversal in the whale supply distribution should be kept in mind as it could instead mean a bearish outcome for the token as it would mean that whales are now selling.

XRP Price

At the time of writing, XRP is trading at around $0.587, up nearly 4% from last week.

Looks like the price of the coin has been heading up in the past few days | Source: XRPUSDT on TradingView

Featured image by Dall-E, Santiment.net, Chart by TradingView.com