During a period of flat prices and increased bearish sentiment, large XRP investors, known as “whales,” are actively accumulating this Cryptocurrency.
This cumulative move reflects sustained belief in XRP’s long-term potential among major holders. This trend could pave the way for a breakout, helping XRP move towards its multi-year high target of $2.90.
XRP Whales Hoard Large Amounts
Over the past week, XRP has been trading in a tight range. Its price faced resistance at $2.62 and found support at $2.20. At this time, the altcoin is trading at $2.34, just above this key support.
XRP’s sideways movement and waning optimism have prompted a group of large investors, holding between 100 million and 1 billion XRP tokens, to take advantage of the opportunity to accumulate significant amounts of this Cryptocurrency.
According to Santiment, this group of investors added a total of about 590 million XRP to their accounts in the past seven days, equivalent to a value of about $1.29 billion. Currently, this group of investors holds 8.91 billion XRP Tokens.
The whales’ hoarding tendency demonstrates strong confidence in the future value of XRP. As large holders accumulate more XRP, pressure on the market could increase, leading to sharp price increases as smaller investors react to the activity.
Despite limited movement in the XRP price, derivatives traders remain optimistic about a rally, as evidenced by the altcoin’s positive funding rate, which currently stands at 0.008%.
The funding rate represents the periodic fee exchanged between traders to align the contract price with the spot price. A positive funding ratio shows that long holders are paying short holders, reflecting a market bias towards bullish sentiment.
XRP price forecast: Why it is necessary to continue to accumulate
XRP is trading at $2.34, holding firmly above support at $2.20. If retail investors increase accumulation, the price could rise to the resistance level at 2.62 USD. A successful break above this level could push XRP towards $2.90, the highest level seen in 2018.
However, if whale hoarding declines and bearish sentiment strengthens, XRP price could break below $2.20 and fall to $1.95.