XRP price has surged 430% in the past 30 days, reaching price levels last seen in 2018, with many crypto Twitter traders surprised by its strength. The rally began in early November after Republican victories in the US elections reignited investor confidence in tokens tied to US companies, including XRP-related Ripple Labs.
Large holders play an important role in contributing to this movement. Data from CryptoQuant shows that activity from whales that track movements from large wallets to exchanges has been consistently rising since last month, by a higher multiple than any other period.
Whales can move the market with buying or selling pressure, and tracking this can indicate market sentiment.
For example, large inflows of cryptocurrencies into an exchange (exchange inflows) can suggest that whales are preparing to sell, which could indicate a bearish trend in the market. Conversely, large outflows from exchanges could indicate accumulation by whales and could be bullish.
But such whale movements tend to coincide with local peaks, CryptoQuant contributing analyst Wu Ming-Kyu wrote in a Monday post, as sophisticated participants sell based on retail inflows. He said that.
“Historically, large spikes in trades from whales to exchanges (marked with red circles) roughly coincide with peaks in XRP price,” Wumingyu said. “This suggests that whales tend to move large amounts of XRP to exchanges for sale locally or near the top of the cycle.”
“The recent surge in trades from whales to exchanges coincides with XRP reaching a local price of around $2.3. This is due to whales bracing for potential profit-taking and increased market activity. “It may indicate that there is a population,” Wu Mingyu added.
XRP has risen 14% in the past 24 hours, outpacing Bitcoin and other crypto majors, according to CoinDesk data. The token reversed Solana’s SOL and Tether (USDT) in quick succession over the weekend, and remained the third-largest token by market capitalization on Tuesday.
