Ripple's XRP has seen significant movement from major investors in recent times, with whales taking advantage of the currency's low price to accumulate large amounts.
According to reports, when the price of XRP dropped from $2.9 to $2.2, whales purchased 120 million XRP, which is worth around $288 million. This large accumulation reflects the confidence of this group of investors in the future value of the currency, especially with the rising hopes of a settlement of the legal dispute between Ripple and the US Securities and Exchange Commission (SEC).
Causes of whale accumulation:
1. Legal Developments: The relative improvement in Ripple’s legal standing enhances XRP’s appeal to investors.
2. High technical capabilities: XRP is considered an effective means of international payments due to its speed and low cost.
3. Preparing for a Rise: Whales buying is often a sign that they expect an upcoming rise in the value of the currency.
Effect of whale accumulation:
• Market Stimulation: Whale buying usually results in a stable or rising price of the currency.
• Positive sign: It gives small investors more confidence to invest in XRP.
• Increased liquidity: The influx of large investments enhances market activity.
Ultimately, the accumulation of whales in XRP shows that this cryptocurrency is still the focus of attention of major investors, which reflects a positive outlook on its value and role in the cryptocurrency market.
