Key Points
- Whales, or large investors, are accumulating Ethereum (ETH) and XRP amidst market fluctuations.
- Both cryptocurrencies have recently experienced price spikes, leading to increased interest from these investors.
The digital currency market has seen recent fluctuations, with significant coins such as Ethereum (ETH) and XRP witnessing price increases.
These price movements have attracted the attention of whales, major investors with substantial holdings, resulting in a build-up of these digital assets.
Price Increase and Whale Accumulation of XRP
XRP experienced a price drop, hitting a low of $0.42 in mid-April, its lowest since August of the previous year.
However, the coin quickly found support, rebounding the next day and rising to $0.50. Despite efforts by bears to depress the price, the bulls maintained momentum, pushing XRP to $0.57 after a week.
As a result, the price of XRP has soared by over 28% in the last 10 days. At present, a red candlestick is appearing, indicating a potential retracement before the bullish momentum continues.
The recent surge in XRP has been driven by increased accumulation by whales.
According to Santiment, an on-chain analytics firm, over the past six weeks, the number of wallets holding at least one million XRP (about 2,013 wallets) has increased by 3.1%.
Moreover, the current number of these wallets is very close to the all-time high.
The bullish sentiment around XRP has been further fueled by its current price action.
Based on a recent analysis by Tony “The Bull” Severino, a crypto analyst and Head of Research at NewsBTC, the one-month Bollinger Bands for XRP are the tightest ever, emphasizing that the last time they were this tight, a 65,000% rally followed.
According to this analysis, a breakout from the tight upper Bollinger Bands at $0.69 could signal a bullish run for XRP, supported by historical trends of significant uptrends.
However, the coin’s future trajectory remains uncertain due to the ongoing legal dispute with the US Securities and Exchange Commission (SEC).
Accumulation of Ethereum by Whales
Ethereum (ETH), the second-largest cryptocurrency after Bitcoin, has also seen whale accumulation, as reported by Lookonchain.
According to the post, a whale possibly linked to Justin Sun, withdrew 4,666 ETH worth approximately $14.91 million from the Binance exchange.
The same whale had previously bought 132,054 ETH (worth around $420 million) at an average price of $3,173 since April 8.
Another on-chain data report by The Data Nerd revealed that another whale also accumulated 5,827 ETH (worth approximately $18.65 million) from Coinbase exchange.
These significant purchases by whales indicate a strong belief in the future trajectory of Ethereum.
While ETH has experienced a sideways trend since mid-April, it started to rally again in the last 3 days, gaining 12% so far as it now trades around $3,200.
Bolstering the bullish sentiment, a self-proclaimed Angel Investor, That Martini Guy, boasting over 540,000 followers, boldly declared, “$4,000 Ethereum is coming”.
His confidence arises from the potential approval of an ETH ETF, which various analyses suggest could propel the coin to revisit its all-time high and potentially establish a new record.
