On-Chain Data Reveals Ripple (XRP) Whales Preparing for Next Leg Up After Weeks of Rangebound Trading
On-chain data is showing that large cryptocurrency holders, known as whales, have been accumulating significant amounts of XRP over the past week. According to analyst Ali, who shared the findings with his 33K followers, whales purchased around 11 million XRP worth approximately $6.82 million.
So what does this heavy buying from whales mean for the price of XRP? Generally, when whales buy up large quantities of a cryptocurrency, it is considered a bullish sign. Whales are more long-term holders who intend to profit from price appreciation. They also have the funds to manipulate markets and drive prices upwards should they choose to.
The buying pressure from whales comes at a time when XRP has been hovering above $0.6 for several weeks but struggling to break above the $0.7 resistance level briefly touched in mid-November. This signals there is strong sell pressure around $0.7 preventing the price from sustaining gains above that price point.
Looking at indicators on the daily chart also provides some context. The relative strength index (RSI) is currently at 51. The RSI is a momentum indicator that measures the speed and change of price movements. It oscillates between 0-100, with readings above 70 generally seen as overbought and below 30 as oversold. A reading of 51 means the coin is neither overbought or oversold, leaving room for upward movement if buying pressure continues.
The heavy accumulation by XRP whales over the past week is generally a bullish sign that larger holders are confident in the prospects of higher prices. If their subsequent actions help drive buying volume, it could be the catalyst needed for XRP to break through the $0.7 resistance and continue the next leg up in its price rally. Investors will be watching to see if whales step in to provide that extra buying pressure.
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