XRP Hits New Milestone in ‘Whale’ Activity as 7-Day Price Gains Near 100%.

Whale Activity Powers XRP Surge, Market Sentiment Shifts

XRP has skyrocketed 430% in the past month, reaching price levels last seen in 2018, catching many traders on Crypto Twitter by surprise. The dramatic price rise began in early November, coinciding with the Republican victory in the U.S. elections, which sparked renewed investor confidence in tokens associated with U.S. companies like Ripple Labs, the creator of XRP.

A major factor behind this rally is the increasing influence of large holders, or “whales.” Data from CryptoQuant reveals that whale activity, tracking large transfers of XRP between wallets and exchanges, has surged to levels far above any other period in the last month. Whales, with their large buy and sell orders, have the power to move markets, and tracking their actions can offer valuable insights into market sentiment.

Whale Movements as Market Indicators

Whale movements often serve as key indicators of market shifts. If there’s a significant inflow of XRP into exchanges, it may suggest that whales are preparing to sell, which could indicate a bearish trend. On the other hand, large outflows from exchanges typically signify whale accumulation, often signaling bullish momentum.

CryptoQuant analyst Woominkyu pointed out that whale activity tends to peak around local price highs. He explained that sophisticated traders, or whales, often sell when retail investors are driving prices up, typically near local peaks or cycle tops.

“Historically, significant spikes in whale-to-exchange transactions (marked by red circles) tend to align with XRP price highs,” Woominkyu stated. “This suggests that whales move large amounts of XRP to exchanges when they are preparing to sell, often near market tops.”

The most recent spike in whale-to-exchange transfers coincided with XRP’s price nearing $2.30, which could signal that whales are positioning themselves for profit-taking or anticipating increased market activity.

XRP’s Strong Performance

XRP has continued to outperform major cryptocurrencies, gaining 14% in the last 24 hours, according to CoinDesk data. Over the weekend, XRP flipped both Solana (SOL) and Tether (USDT) in market cap rankings, making it the third-largest cryptocurrency by market cap as of Tuesday. This solidifies XRP’s position as one of the top performers in the crypto space, driven in part by whale activity and shifting market sentiment.