XRP Bullish Signal: Shark & Whale Population Sharply Growing
July 31 2024 - 5:00PM
NEWSBTC
On-chain data shows the total number of sharks and whales on the
XRP network has seen a sharp increase recently, a sign that could
be bullish for the asset’s price. XRP Sharks & Whales Have
Witnessed Their Count Go Up Recently According to data from the
on-chain analytics firm Santiment, the shark and whale wallets have
registered a notable jump over the past five weeks. The indicator
of relevance here is the “Supply Distribution,” which tells us
about the number of addresses that currently belong to a given
wallet group. Related Reading: Dogecoin & Other Memecoins
Seeing Less Interest Than Bitcoin: Data The addresses are put into
these cohorts based on the number of coins that they are carrying
in their balance right now. Investors who own between 1 and 10 XRP,
for example, fall inside the 1 to 10 coins group. In the context of
the current discussion, the 10,000+ coins group is of interest. The
cutoff for this cohort converts to around $6,500 at the current
exchange rate. This amount in itself isn’t high, but the upper
range of the group stretches to infinity, so it should also include
heavyweight investors like sharks and whales. The sharks and whales
are considered key investors in the market, so their behavior can
be to keep an eye on, as it may end up affecting the
cryptocurrency’s price. Naturally, the whales are the more
influential of the two, due to their larger size. Now, here is a
chart that shows the trend in the XRP Supply Distribution for the
10,000+ coins cohort over the past few months: As displayed in the
above graph, the XRP Supply Distribution for this wallet group has
observed a rapid increase recently. More specifically, around 2,390
addresses of this size have popped up on the network in just the
past five weeks. This would suggest that entities like the sharks
and whales have been busy accumulating the cryptocurrency.
Following the latest increase, the indicator’s value has reached
the 279,400 mark, which is the highest that it has been in about
six months. From the chart, it’s visible that the indicator’s value
had been observing a downtrend earlier in the year, alongside
which, the asset’s price had also been riding bearish momentum. The
indicator reached a bottom in April, which is around when the
asset’s drawdown also slowed down. And since the recent uptrend in
the Supply Distribution of the sharks and whales has appeared, the
XRP price has also felt the return of bullish winds. “The
correlation between these wallets and XRP’s market value has been
undeniable throughout 2024,” notes Santiment. Related Reading:
Minimal Bitcoin On-Chain Resistance Ahead: Price Set For New ATH?
Given the pattern, this indicator should be monitored in the near
future, as a continued rise in it could spell a bullish outcome for
the cryptocurrency. XRP Price XRP has enjoyed a rally of around 5%
during the past 24 hours, which has taken its price to the $0.65
level. Featured image from Dall-E, Santiment.net, chart from
TradingView.com
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