On-chain data shows that XRP whales have recently participated in a significant number of purchases, a potential reason behind the asset’s surge.
XRP whales recently added 470 million tokens to their supply
As analyst Ali Martinez explains in a new post on X, XRP whales have been expanding their holdings over the past 10 days. The relevant metric here is “Supply Distribution” from on-chain analytics firm Santiment, which tracks the total amount of tokens a given wallet group is currently carrying.
Addresses or investors are placed into these groups based on their current balance. Wallets containing 5 coins, for example, belong to the 1 to 10 coin group. In the context of the current topic, whale entities are the addresses of interest.
The range for this group is generally defined between 100 million and 1 billion XRP. At the current exchange rate, the lower end of this range equates to approximately $63.1 million, while the upper end to $631 million. In general, any entity’s influence on the network increases the more assets it holds, so whales, who have a pretty huge balance, would have some degree of power.
As such, the behavior of these investors may be worth monitoring, because even if it doesn’t directly impact the price, it can at least tell us what the sentiment is within this cohort.
Now here is a chart that shows the trend of the supply distribution of XRP whales over the past few days:
As seen in the chart above, the supply of XRP whales has seen a notable increase recently. Specifically, these huge investors added over 470 million tokens (nearly $300 million) to their portfolios in the last ten days.
The chart shows that the bulk of these purchases took place while the asset was still trading around the $0.58 mark, suggesting that whales believed the level provided a profitable window on the coin.
These investors’ bet clearly paid off, as the cryptocurrency’s price rose from below $0.59 to above $0.63 over the past weekend.
While things have been going well for the coin so far, the indicator could be one to watch in the near future as what this cohort does next could end up being reflected in the price of the coin once again. active.
Naturally, if the indicator continues to rise, it will be a bullish sign for XRP, as it would imply that whales are supporting further upside. On the other hand, a decline could be bad news, because it would mean the whales are participating in profit-taking.
XRP Price
At the time of writing, XRP is trading around $0.631, up 8% over the past week.
