During the phase of price consolidation and increasing bearish sentiment, large XRP investors, known as “whales,” actively accumulated the cryptocurrency.
This accumulation reflects strong confidence in XRP’s long-term potential among major holders. This trend could set the stage for a breakout that could take XRP to a multi-year high of $2.90.
XRP whales are filling their bags
Last week, XRP traded in a tight range. Its price faced resistance at $2.62 and found support at $2.20. At the time of writing, the altcoin is trading at $2.34, above this key support level.
XRP’s sideways move and weakening bullish sentiment have prompted a group of large investors holding between 100 million and 1 billion XRP tokens to take advantage of the opportunity to accumulate significant amounts of the cryptocurrency.
According to Santiment, this group of investors collectively added about 590 million XRP to their holdings over the past seven days, which is about $1.29 billion. This group of XRP investors currently owns 8.91 billion tokens.
This whale accumulation trend signals strong confidence in the future price of XRP. As larger holders accumulate more XRP, this could create upward pressure on the market, leading to potential price increases as smaller investors react to this activity.
Despite XRP’s limited price movement, derivatives traders remain optimistic about the rally, as evidenced by the altcoin’s positive funding rate, which currently stands at 0.008%.
The funding rate is a periodic fee charged between traders to match the contract price to the spot price. A positive funding rate indicates that long position holders are paying short position holders, which reflects the market’s bullish bias.
XRP Price Prediction: Why the Accumulation Should Continue
XRP is trading at $2.34, holding slightly above the $2.20 support level. If retail investors increase their holdings, the price could rise towards the $2.62 resistance level. A successful break above this level could push XRP towards $2.90, a high last seen in 2018.
However, if whale accumulation subsides and bearish sentiment increases, the XRP price will fall below $2.20 and fall to $1.95.
