XRP whales accumulate as small holders capitulate
On-chain data indicates that large XRP holders, or 'whales,' have been accumulating the cryptocurrency while smaller retail investors have been selling. Analysts suggest this divergence is a bullish signal for the asset's price performance.
Why it matters
Understanding accumulation patterns helps investors gauge market sentiment and potential price trends in the volatile cryptocurrency sector.
Payments-focused cryptocurrency XRP’s price has risen over 8% in five weeks and during this time, there has been a notable divergence in accumulation trends of large holders or whales and small holders.
According to on-chain data from Santiment, wallets holding between 100,000 and 100 million XRP added 2.8% more coins to their balances over the past five weeks. This accumulation by whales and sharks coincided with the token rebounding to $1.16 from $1 at the end of June, suggesting stronger hands are leaning into the current price action.
At the same time, the smallest wallets have shed 5.2% of their holdings during the same period. This capitulation by small holders stands in sharp contrast to the buying pressure from key stakeholders.
These diverging trends are bullish for XRP, according to Santiment.
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