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Whales have begun accumulating XRP, but this raises questions: will their bullish sentiment significantly influence market trends?
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Over the last 48 hours, the crypto landscape has witnessed heightened whale activity, indicating a strategic accumulation of XRP amidst volatile market conditions.
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According to COINOTAG, XRP recently experienced a notable shift in market dynamics, which may pave the way for a potential rebound.
XRP accumulation by whales signals a potentially bullish turn in the market, as significant buying activity could impact price dynamics amid existing sell pressure.
Whales begin accumulation of XRP
The sentiment among XRP whales—known to control between 10 to 100 million tokens—indicates a bullish outlook as they’ve been accumulating more of the asset.
In fact, recent analysis on Santiment revealed that in just 48 hours, a total of 150 million XRP valued at approximately $388 million has been acquired.
Source: Santiment
This substantial accumulation may suggest that the market is preparing for a significant price rally in the upcoming days, particularly as these whales view the current price as a favorable entry point before a potential price surge.
Simultaneously, sentiment in the derivatives market is aligning with this accumulation, as indicated by significant changes in key metrics.
Short losses in the market
There have been considerable short liquidations across various timeframes within the last 12 hours. Specifically, total liquidations reached $2.83 million—with short contracts amounting to $2.15 million and long contracts at $676,390.
When liquidations arise, it reflects that contracts are being forcibly closed as market conditions move against them. Notably, these trends suggest the market has been favorable for long positions.
Source: Coinglass
To better understand the derivatives market sentiment, COINOTAG assessed the OI-weighted funding rate. This metric combines open interest with funding rates to project potential market movements.
Currently, the OI-weighted funding rate appears to be trending upwards at 0.0064%, indicating that market sentiment is leaning towards bullish movements.
Could $3.3 be the next target?
The prevailing bullish sentiment observed could propel XRP towards the resistant target of $3.37, a significant peak last reached on January 16.
This target represents a critical threshold for XRP, given that there are $15.86 million in pending sell orders at this level. A move towards this point could trigger these orders, leading to potential sell-offs unless bullish momentum prevails.
Moreover, the political landscape is noteworthy, as former President Donald Trump recently highlighted the “Trump effect” on Ripple’s operations and U.S expansion on TruthSocial. His backing could enhance retail interest in XRP, particularly if a Spot ETF for XRP gains approval in the U.S. market.
Conclusion
The accumulation by whales and the shifting sentiment in the derivatives market suggest a potential upside for XRP. As volatility continues, market players should remain vigilant for cues that could signal further price movements.
