The recent volatility in crypto prices has opened up enticing prospects for shrewd investors, specifically those who hold a significant amount of XRP to acquire additional coins.
Earlier today, renowned crypto analyst Ali Martinez highlighted the unusual buying activity of XRP whales during the recent market dip. In a tweet, Martinez noted that despite XRP’s price dropping by 12% between June 22 – June 28, whales seized the opportunity and purchased a staggering 360 million XRP tokens, equivalent to a substantial $170 million.
Notably, the so-called “whales” are often seen as trendsetters in the crypto space, and their actions can influence market dynamics. By acquiring such a significant amount of XRP during a dip, these whales are likely signalling their belief in a future price increase. This move may attract other investors and reinforce positive sentiment around Ripple and XRP.
The gargantuan purchase comes just days after the pundit highlighted the correlation between previous price jumps in XRP and a spike in the number of active XRP addresses.
“The last three instances $XRP price jumped were preceded by a spike in the number of active XRP addresses. On-chain data from Santimentfeed has recorded a spike in network activity over the past few days. Could history repeat itself?” Ali tweeted on June 26, sharing the chart below.
These developments send a clear message about investor confidence in Ripple’s vision and its underlying XRP token. Ripple, San Francisco, a blockchain-based payment company, has garnered attention for its potential to revolutionize cross-border transactions.
Recently, Ripple secured an In-Principle approval of a major payments institution license from Singapore, allowing it to offer regulated digital asset products and services and scale customer use of its On Demand Liquidity (ODL) product. This and partnerships with financial institutions can amplify the utility and demand for XRP, ultimately exerting an influence on its value.
Notably, the surge in Ripple and XRP interest can also be attributed to the optimism surrounding Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over the classification of XRP as a security. It is worth noting that Ripple’s victories against the SEC, including the recent disclosure of the highly disputed Hinman documents, have been widely regarded as a substantial reinforcement of Ripple’s arguments.
That said, the outcome of this case holds substantial importance, as a favourable ruling for Ripple could fuel investor confidence and bolster the prospects of XRP as a prominent cryptocurrency.
From a technical standpoint, XRP has been experiencing a consolidation phase after encountering significant resistance at $0.55. Nevertheless, when examining the hourly time frames, the trend appears promising as the price establishes higher lows. According to the crypto analyst known as “Altcoin Sherpa,” this suggests the need for patience until the resistance level is surpassed.
At press time, XRP was trading at $0.47 after a 0.60% drawdown in the past 24 hours, as per data from CoinMarketCap.