Recently, the popular on-chain data aggregator Santiment revealed a major factor behind the substantial rise in XRP’s price. Over the past ten days, XRP has surged by an impressive 36%, with significant contributions from large investors.
Whale Accumulation: The Driving Force
Santiment’s data indicates that the recent price surge from July 7 to 13 was heavily influenced by large cryptocurrency whales accumulating XRP. These whales, who hold between 10 million and 100 million XRP, purchased around $300 million worth of XRP between July 12 and 15. Additionally, wallets holding between 100,000 and 1,000,000 XRP also saw substantial accumulation.
Santiment noted:
This level of XRP accumulation does appear to have had a positive impact on their +36% surge that ran from July 7th to 13th. Keep an eye on whether these key stakeholders continue accumulating.”
FOMO and Market Sentiment
Another key factor in XRP’s price movement is the high level of FOMO (fear of missing out) among investors. In another tweet, Santiment highlighted that the growing excitement around XRP, as well as Litecoin (LTC), could create both high-risk and high-reward opportunities for traders. This underscores the volatile nature of the cryptocurrency market and the need for investors to conduct thorough research before making decisions.
XRP’s Price Performance
Over the past week, XRP, the seventh-largest cryptocurrency by market capitalization, has shown significant price growth. Despite attempts to break above the $0.56610 resistance level, XRP faced substantial selling pressure, resulting in a 7% drop on Saturday and a 6% decline earlier today. Currently, XRP is trading at $0.54238.
Whale Activity Insights
The influence of large-scale investors, or “whales,” has been crucial in understanding XRP’s price trends. Earlier this week, Whale Alert, a blockchain tracking service, identified several large XRP transfers. Notably, three withdrawals from Binance to unknown wallets totaled around 110 million XRP, valued at $57.1 million. Additionally, 28,070,000 XRP, equivalent to $14,936,884, were transferred from an unknown wallet to the Bitstamp exchange.
Conclusion
The recent surge in XRP’s price underscores the significant role of whale activity and market sentiment. As major investors continue to accumulate XRP, the market remains watchful. Investors and traders should stay vigilant and conduct thorough research to navigate the volatile cryptocurrency landscape effectively.
