Whales have accumulated 40 million Ripple’s XRP tokens in the last 24 hours against the backdrop of fluctuating prices and ongoing market volatility. This has created a sentiment that XRP could reach $3.50 by the end of the year.
What does this development mean for the cryptocurrency market?
40 million Ripple tokens amassed—bullish?
While XRP’s price has experienced low volatility for most of the year, trading near $0.50, it saw a significant surge after the start of the crypto rally in November. In the last 30 days, the coin went up by more than 66%.
Speculations over recent regulatory developments have further boosted the positive sentiment. This especially includes the potential for positive outcomes from Ripple’s ongoing legal battles with the SEC, which could pave the way for greater adoption and institutional investment in XRP.
There’s also anticipation over the potential approval of an XRP ETF (exchange-traded fund), which could significantly enhance liquidity and accessibility for retail investors.
Finally, recent initiatives like the launch of its RLUSD stablecoin seek to improve liquidity within Riiple’s ecosystem and expand its presence in key markets like Asia.
An amalgamation of these developments could push the price toward the anticipated $3.50.
XRP price action
XRP/USD price action (Source: TradingView)
XRP is currently trading at $2.34 at a market cap of almost $135 billion. The RSI currently lies near 70, indicating that the price is approaching overbought territory.
Recent similar accumulations took place between December 7 and December 10, 2024. Whales accumulated approximately 100 million XRP tokens, while the price of XRP dropped by 27.2%, falling from $2.61 to $1.90.
Shortly after the accumulation, XRP’s price saw a recovery, rising to approximately $2.43, a 27.89% increase after the initial dip. While this pattern won’t necessarily repeat, such accumulations are a sign that the whales are betting on a further Ripple price increase.
This could be pointing to a more long-term perspective beyond not only 2024 but also 2025, anticipating more positive developments for the XRP price, which means traders should focus on long-term trends rather than short-term fluctuations.
Recent whale action encourages a buy-and-hold strategy if the current prices represent a big opportunity ahead of a significant upward trajectory. Whether their actions indicate the beginning of a bullish trend or speculative behavior, their influence on shaping the crypto market cannot be ignored.
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