On-chain data indicates that XRP whales have significantly increased their holdings over the past week, accumulating 71 million coins even as the asset’s price declined.
Whale Activity and Market Sentiment
Analyst Ali Martinez recently highlighted this trend in a post on X, focusing on the supply held by large XRP holders, often referred to as “whales.” These entities, possessing substantial XRP holdings, can exert considerable influence on the market. Their actions, while not always directly impacting the asset’s price, often reflect the prevailing sentiment among these major investors.
The behavior of these whales is tracked through various metrics, including their holdings. A chart shared by Martinez illustrates the recent expansion of XRP whale holdings. Over the past week, these large investors have added over 71 million XRP tokens, currently valued at approximately $97.8 million, to their portfolios. This accumulation occurred while the asset’s price decreased by over 8% during the same period. This timing suggests that these major players may view the price dip as a buying opportunity. Whether this strategy will prove successful remains to be seen.
Potential for Price Volatility
In a separate X post, Martinez suggested that XRP may be poised for a volatile move. He pointed to the Bollinger Bands indicator, a tool used to gauge an asset’s volatility. The indicator comprises a 20-day moving average (MA) central line and two bands representing standard deviations above and below it.
The chart shows that the Bollinger Bands have recently tightened around the 3-day XRP price, indicating a period of stagnant price action. Martinez noted that the current squeeze is the tightest in over a year. He stated, “When volatility compresses this tightly, it’s a signal that a violent price expansion is approaching.”
XRP Price Overview
XRP briefly surpassed the $0.54 mark a week ago, but the price has since retreated, currently trading around $1.37.
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