Whale Activity on the Rise

On-chain data reveals that XRP whales have accumulated substantially over the past week. Analyst Ali Martinez shared insights on X, emphasizing the increase in the supply share held by these large investors.

The analytics firm Santiment provided the 'Supply Distribution' data, which illuminates the total amount of tokens held by different wallet groups.

Understanding Supply Distribution

The 'Supply Distribution' indicator categorizes addresses based on their token holdings. For example, the 1 to 10 coins cohort includes wallets owning between one and ten tokens.

In this context, whales are defined as holders of 1 to 10 million XRP, which translates to $600,000 to $6 million at current exchange rates. These whales are significant market players due to the massive amounts they control, making their actions crucial to market dynamics.

A Significant Jump

The chart shared by Martinez highlights a significant jump in the supply held by XRP whales over the past week. These investors have added 140 million tokens, worth over $84 million, to their holdings.

This accumulation spree has occurred even as XRP trades at relatively high levels following a recovery rally. Such buying activity suggests that whales anticipate further price increases.

"The influence of any entity in the market generally increases with the more assets they hold, making the whales influential beings."

Implications for XRP's Future

The whales' confidence in XRP's potential for further rise is evident. Their substantial accumulation might signal a bullish trend.

However, it remains to be seen whether their bet will pay off, with the price continuing its rally. Monitoring this metric in the coming days is essential, as any decline in whale holdings could indicate a bearish turn.

Current Market Status

At the time of writing, XRP is trading around $0.60, showing a nearly 4% increase over the last seven days. This recent activity from whale investors could be pivotal in shaping the asset's future price movements.