Why Are XRP Whales Accumulating So Strongly Now, The Strongest in 8 Years?

▲ XRP, Whale/AI Generated Image ©

XRP (Ripple) whale investors are showing the strongest accumulation trend in 8 years, leading to a resurgence of discussions about a new bull market. In particular, with large holders absorbing a significant portion of the circulating supply, scenarios of a sharp price increase due to future supply shortages are being discussed.

According to the crypto media outlet Bitcoinist on May 21 (local time), based on Santiment on-chain analysis data, whale investors holding over 10 million XRP currently control approximately 68.5% of the total XRP circulating supply. The amount of XRP they hold totals about 45.83 billion units, which is the highest level since May 2018.

Crypto analyst Jack Humphries analyzed that large investors are continuously absorbing exchange supply. He explained, “Smart money is quietly soaking up supply, utilizing the long-term sideways trading range.” He added, “If this accumulation trend continues, the XRP sell-side liquidity could become extremely thin.” The media reported that while the XRP price has been in a prolonged bearish trend in the $1.30-$1.40 range, whale investors are using this as an opportunity to buy at a low price.

Market observers also suggest that this trend could be the final accumulation phase just before a full-fledged bull run. Santiment analyzed that the recent whale accumulation trend could push the XRP price back up to around $1.50. Humphries also assessed that if XRP breaks above its current consolidation range, the entire macro chart structure could fundamentally change.

From a technical analysis perspective, Ali Martinez's outlook is also attracting attention. He explained that a Bollinger Band compression, which has lasted over a year, is forming on the XRP 3-day chart. Martinez described the current zone as a "no-trade zone," stating that the direction remains unconfirmed until a 3-day candle close occurs outside the $1.29-$1.50 range.

He predicted that if XRP settles above $1.50, a rally of over 30% to above $1.80 is possible. Conversely, he warned that if it drops below $1.29, the current bullish structure would be invalidated, and there's a possibility of a sharp decline to the psychological support level of $1.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*