XRP Surges 36%, Whales Buying Heavily
In A Nutshell
The recent surge in XRP’s price, touching $0.60 and marking a 36.45% increase within a week, has drawn considerable attention. Key factors influencing this uptrend include significant accumulation by whales and sharks, holding 85% of the total supply, and a peak in Open Interest (OI) in the crypto derivatives market. Additionally, the motion of previously stagnant coins and the upcoming launch of cryptocurrency’s reference rates and real-time indices are contributing to the optimistic price outlook for XRP.
Understanding the Role of Whales and Sharks
The significant ownership of XRP by whales and sharks, entities controlling large quantities of the token, plays a pivotal role in its market dynamics. A recent report highlighted an increase in the accumulation of addresses holding over 100,000 XRP. This accumulation process exerted buying pressure on XRP, contributing to its price hike. With these investors now owning 85% of the supply, the highest in 11 months, their continued accumulation could potentially push XRP’s value to revisit or surpass the $0.63 mark.
Derivatives Market and XRP’s Open Interest Surge
XRP has witnessed a notable increase in Open Interest in the derivatives market, reaching $233.85 million, the highest since April 12. Open Interest represents the total outstanding derivative contracts that have not been settled. An increase in OI usually signals heightened speculative activity and liquidity in the market, which, if maintained, can support further price increases for XRP, possibly reaching the anticipated $0.63 level.
Impact of Cryptocurrency Indices and Stagnant Coins
The imminent introduction of cryptocurrency’s reference rates and real-time indices on July 29 adds another layer of interest in XRP. Although these indices are not tradable futures products, they provide valuable pricing data for the assets involved, potentially influencing market sentiment. Furthermore, the increase in the 90-day Mean Dollar Invested Age (MDIA) suggests that whales are mobilizing idle coins back into circulation, further bolstering XRP’s price trajectory.
Our Take
The combined influence of whale and shark accumulation, the surge in Open Interest, and the strategic movement of stagnant coins presents a compelling case for XRP’s potential to reach or even surpass the $0.63 threshold. While the forthcoming launch of reference rates and real-time indices contributes to the positive outlook, it’s crucial for investors to remain vigilant, considering the volatile nature of the cryptocurrency market. The current trends suggest a bullish outlook for XRP, but as with any investment, due diligence and continuous market observation are advisable.
