XRP whales are taking advantage of the price drop to accumulate more tokens. XRP recently hit a low of $0.438 as a result intensive sale in the broader cryptocurrency market, where the value of many cryptocurrencies has fallen sharply. This intense sell-off led to a dramatic 20% drop in XRP price in 24 hours.
Despite this pointed decline, on-chain transaction data reveals that some gigantic holders, often referred to as “whales,” remain undeterred. These investors are taking advantage of the lower prices to accumulate more XRP on various exchanges.
Whales are buying millions of XRP
The latest data from Whale Alerts, a whale transaction tracker, reveals an intriguing accumulation pattern among XRP holders. Over the past 48 hours, Whale Alerts has recorded multiple instances of significant XRP transfers to and from various exchanges. Most of these transfers involve moving significant amounts of XRP to private, unknown wallets from cryptocurrency exchanges.
This the last huge transaction There was a transfer of 26.69 million XRP tokens worth $13.6 million from the Binance exchange to a private wallet identified as “rhWj9g.” This transaction is part of a broader trend observed by Whale Alerts, which highlights a total of 157 million XRP tokens worth around $75.16 million transferred from cryptocurrency exchanges to private wallets in the past 24 hours. Interestingly, the majority of these transfers came from the Binance exchange.
Interestingly, the data also indicates that probable sale transactionwhere 31.7 million XRP tokens worth $15.1 million were transferred to Bitstamp from a private wallet. This move contrasts with the overall accumulation trend, suggesting that not all whales are accumulating.
Extending the time frame to the last 48 hours, Whale Alerts data reveals a total accumulation of 228.54 million XRP tokens worth $108.78 million from cryptocurrency exchanges to private wallets.
Rapid price recovery?
This accumulation by whales may be a signal future price recoverybecause significant purchases from gigantic holders often lead to market gains. Strategic buying on a downward trend shows confidence that the current decline is a ephemeral setback.
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Recent price action has seen the cryptocurrency drop from $0.653 to $0.438 in five days, effectively undoing the gains made in July. This drastic price drop has seen the cryptocurrency enter oversold territory on the Relative Strength Index (RSI).
XRP has managed to recover some of its losses. The RSI indicator now reflects escalate in purchasing dynamicswhich suggests investors are starting to re-enter the market.
At the time of writing, the altcoin is trading at $0.5016, up 7.11% in the past 24 hours. This bounce has seen XRP breturn to the key, multi-month resistance and support levels around $0.5, a price point that has historically been both a floor and a ceiling for the cryptocurrency. This price point has proven to be a significant threshold that XRP has been unable to break free from for quite some time.
Featured image from CoinMarketCap, chart from TradingView.com
