Ripple (XRP), the fourth-largest cryptocurrency by market capitalization, has been on a tear in November, with its price surging over 13%. On-chain data trends reveal that crypto whales have played a major role in the ongoing price rally, accumulating over $850 million worth of XRP coins in the last two weeks.
According to data from Santiment, large investors holding 100,000 to 1 billion XRP coins have been aggressively buying the coin in recent weeks. Between October 24 and November 6, these whales acquired 1.26 billion XRP coins, bringing their cumulative holdings to a new 2023 peak.
The newly-acquired 1.26 billion XRP coins are worth approximately $850 million, at the current market price of $0.68. This large investment within just two weeks has evidently put upward pressure on XRP price, driving it above the critical resistance zone at $0.65.
Why are whales buying XRP?
There are a few possible reasons why whales may be buying XRP in such large quantities. One possibility is that they are bullish on the long-term prospects of the Ripple network and XRP. The Ripple network is a global payment network that enables fast and low-cost cross-border payments. It is already being used by a number of major financial institutions, and its On-Demand Liquidity (ODL) service is gaining traction among businesses.
Another possibility is that whales are buying XRP in anticipation of a positive outcome to Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC). The SEC is alleging that Ripple sold XRP as an unregistered security. However, many XRP supporters believe that the SEC’s case is weak and that Ripple will ultimately prevail in court.
Whatever the reasons for their buying spree, it is clear that whales are bullish on XRP. Their large investments in the coin are a strong signal of confidence in the Ripple network and its future potential.
What does the future hold for XRP?
If the current whale buying trend continues, it could lead to further gains for XRP in the coming weeks and months. Additionally, if Ripple is successful in its legal battle with the SEC, it would be a major boost for the coin and the Ripple network.
However, it is important to note that the cryptocurrency market is highly volatile and unpredictable. XRP could experience sharp price swings in either direction in the short term. Investors should always do their own research before investing in any cryptocurrency.
Additional factors driving XRP’s price rally
In addition to whale buying, there are a number of other factors driving XRP’s price rally. These include:
- Increasing institutional adoption: Institutional investors, such as hedge funds and asset managers, are increasingly adopting XRP. This is due to XRP’s strong fundamentals, such as its fast transaction speeds, low fees, and global reach.
- Expanding use cases: The Ripple network is being used by an increasing number of businesses and financial institutions to facilitate cross-border payments. This is driving demand for XRP and contributing to its price rally.
- Positive sentiment surrounding the Ripple-SEC lawsuit: As mentioned earlier, there is growing optimism among investors that Ripple will ultimately prevail in its ongoing legal battle with the SEC. A positive outcome to the lawsuit would be a major boost for XRP and the Ripple network.
Overall, XRP is a cryptocurrency with strong fundamentals and a growing number of use cases. Whale buying and increasing institutional adoption are two major factors driving its current price rally. If these factors continue to be supportive, XRP could be poised for further gains in the coming weeks and months.
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