cryptoglobe.com
At a time in which the price of XRP keeps on dropping amid a wider cryptocurrency market correction that has seen the price of BTC drop to $28,500 and ETH below the $1,800 mark, XR whales have started accumulating more tokens as the cryptocurrency approached a key support level.
According to recent analysis conducted by on-chain analytics firm Santiment, as XRP’s price dropped to $0.58 after losing 7% of its value over the last 7-day period and dropping below the $0.60 support level, whales started snapping up tokens, with whale transaction activity surging during the dip.
Santiment’s analysis shows that as investors feel the pain on numerous other assets, including the meme-inspired cryptocurrency Shiba Inu ($SHIB) and PancakeSwap’s native $CAKE token.
🐳 As the crowd feels the pain, there are several assets seeing an increase in whale activity. As they attempt to capitalize on the discounted prices, read about the four projects we're seeing some notable activity rises: $SHIB, $XRP, $SAND, & $CAKE https://t.co/SnuKebg7h1 pic.twitter.com/VWKlH95yU0
— Santiment (@santimentfeed) August 17, 2023
The firm’s findings caution that whale transactions aren’t exclusively indicative of accumulation, with the recent activity uptick potentially stemming from either new acquisitions or potential sell-offs.
As Santiment noted, however, XRP has lost around 17% of its value, and historical patterns suggest that after prices drop significantly large investors tend to accumulate rather than divest of their holdings.
As CryptoGlobe reported, cryptocurrency investment products focusing on $XRP have seen their assets under management rise 127% so far this year, and reported their sixteenth consecutive week of inflows last week, with $500,000 being invested in them.
nvestors have increased their bets on XRP after earlier this year, a recent ruling from Judge Analisa Torres in the case the U.S. Securities and Exchange Commission (SEC) brought against XRP differentiating between sales to institutional investors and on exchanges, noting the token itself isn’t necessarily a security.
The ruling saw a number of cryptocurrency exchanges including Coinbase, Kraken, and Gemini relist the token, significantly boosting its liquidity. Earlier this week, however, the SEC revealed its intent to file an “interlocutory appeal” against Judge Analisa Torres’ recent ruling on Ripple’s programmatic XRP sales.
Notably, blockchain data shows that the XRP Ledger has been seeing over 1.2 million transactions per day since the beginning of August, surpassing the number of daily transactions seen on the second most popular network in the cryptocurrency space, Ethereum ($ETH), which has recorded 1.09 million a day.
Featured image via Unsplash.