- Despite a decline in XRP’s value, the count of XRP whales has risen over the past month.
- The number of XRP investors holding between 1,000 and 1,000,000 tokens has increased, according to data from Santiment.
- This rise in whale count often precedes a rally in the asset’s price, indicating potential growth for XRP.
Despite a dip in value, XRP sees a rise in whale count, indicating potential growth and increased demand among market participants. This article delves into the details and implications of this development.
Rise in XRP Whale Count
The number of XRP investors holding between 1,000 and 1,000,000 tokens has seen a rise over the past month, despite a decline in the altcoin’s value. According to data from Santiment, this cohort of XRP holders now totals 860,000, marking a 0.23% increase in the last 30 days. This growth, albeit minute, is noteworthy as it follows a sharp decline in the number of XRP whales in this category.
Significance of Whale Count Increase
A hike in an asset’s whale count is significant as it often precedes a rally in its price. Despite the recent market downturn affecting XRP and causing a 7% value loss, demand for the altcoin persists among market participants. Key momentum indicators on the daily chart, such as the Chaikin Money Flow (CMF), have trended upwards despite the decline in price. This bullish divergence indicates that buyers are accumulating the asset despite the price drop, potentially because they believe the price decline is temporary or represents a buying opportunity.
Potential for XRP Growth
XRP’s decline reveals that selling pressure has been high. However, the rising CMF signals that if buying momentum continues to build, it could eventually outpace the token’s sell-off, triggering a price hike. The possibility of this happening in the short-term is confirmed by the position of XRP’s MACD line at press time, which crossed above the signal line on 21 April and has since moved in an uptrend. This indicates that market momentum is increasing in a positive direction, suggesting potential growth for XRP.
Conclusion
Despite a decline in value, the rise in XRP’s whale count and positive momentum indicators suggest potential growth for the altcoin. As demand persists among market participants, the asset could see a price hike if buying momentum continues to build. This development highlights the importance of monitoring whale count and momentum indicators when assessing potential growth in the crypto market.
