Analysis

XRP Sees Huge Accumulations as ‘Mega Whales’ Hold More Units

The addresses holding over 10 million units of Ripple XRP are returning. In the last three months, the holders of massive amounts of native units have returned and continue to accumulate and hold more of the digital token. A similar scenario was seen before the big rally of the XRP/USD and XRP/BTC pairs at the end of 2020.

Since December 2021, there was a 76% spike in XRP ‘mega whale’ address, as noted by Santiment, an analytic firm. These whales reportedly hold about 897 million XRP tokens, worth over $712 million today.

XRP Sees Huge Accumulations as 'Mega Whales' Hold More Units

The analytic firm added that this is the second time this has happened in the token’s history. The first instance where this massive accumulation happened was in November-December 2020. 1.29 billion units of XRP were deposited to mega whale addresses at the time. 

Coincidentally, the spike in XRP supply into these mega whale addresses coincided with the price bounce against Bitcoin. The exchange rate for XRP/BTC at this time was noted to have surged by nearly 150%, as high as 3,502 ‘satoshis’ in November 2020. XRP/USD also rallied by more than 250% in the same period.

XRP Sees Huge Accumulations as 'Mega Whales' Hold More Units

Santiment hinted that this increase in the whale-led accumulation raises the possibility of a similar upside trend for the XRP. However, it should be noted that the November 2020 boom was preceded by Ripple’s move to buy $46 million worth of XRP to support healthy markets.

Recently, XRP’s price rebounded by 65% to $0.91, three weeks after its yearly low of $0.55 in late January 2022. However, bulls were seen to have reeled under the pressure of the 50-week exponential moving average, and the XRP price settled down to $0.77. 

Several predictions for the coin suggest its imminent rally to $1.00. This observation was taken from XRP’s chart, Aside from this, the community is paying close attention to the SEC v. Ripple lawsuit, and if the blockchain wins, the price of XRP will likely surge.

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Gaurav Roy

Gaurav is an expert when it comes to Cryptocurrency, writing for some of the biggest Cryptocurrency websites out there.

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