- The number of XRP whales has increased over the past month
- This is despite the decline in the value of the cryptocurrency
The number of XRP investors holding between 1,000 and 1,000,000 tokens has risen over the past month, despite the decline in the value of the altcoin. This, according to Santiment Data for the mentioned period.
Source: Santiment
In fact, Santiment found that this group of XRP holders totaled 860,000, having risen 0.23% in the past 30 days.
This growth, albeit small, is noteworthy, as it follows a sharp decline in the number of XRP whales that make up this category of investors.
The data also revealed that at the beginning of the year, the number of XRP whales that owned between 1,000 and 1,000,000 XRP tokens reached 867,000. This number gradually declined to a year-to-date low of 858,000 by April 3, after which it began to rise.
XRP and its potential
A rise in the number of whales is a big asset, because it often precedes a rise in its price. While the recent market downturn has impacted XRP and caused it to lose 7% in value, demand for the altcoin continues to persist among market participants.
This was confirmed by the main momentum indicators on the daily chart. For example, Chaikin Money Flow (CMF) trended upward despite the price decline.
Realistic or not, here is the market cap of XRP in terms of BTC
This indicator tracks the flow of money into and out of an asset. When it rises while the price of an asset falls, a bullish divergence forms. This means that buyers are accumulating assets despite the falling price. This may be because they believe the price drop is temporary or represents a buying opportunity.
Now, the decline in XRP showed that selling pressure was high. However, the rise in CMF indicated that if buying momentum continues to increase, it may eventually exceed token selling, sending prices higher.
Source: XRP/USDT, TradingView
The possibility of this happening in the short term was confirmed by the location of XRP’s MACD line (blue) at the time of publication. It crossed above the signal line (orange) on April 21 and has since moved in an upward trend. When an asset’s MACD line lies above its signal line, it is bullish. It indicates that market momentum is increasing in a positive direction.
However, the MACD and signal lines for XRP remain below the zero line at press time – a sign that the bearish impact is still significant across the market.