XRP Whales Signal Bullish Taker Demand

What to Know:

• XRP whales are accumulating tokens during a recent price slump, suggesting a potential bottoming phase.
• This accumulation coincides with increased activity on South Korean exchanges and the launch of wXRP, aimed at enhancing XRP’s cross-chain functionality.
• Whale accumulation and increased utility could signal a potential recovery for XRP, impacting its liquidity and market dynamics.

XRP has experienced choppy trading recently, fluctuating around the $2.00 mark. Despite this, on-chain data suggests that large holders are actively accumulating XRP. This behavior, coupled with developments aimed at increasing XRP’s utility, could signal a shift in market sentiment.

Whale Accumulation During Price Dip

Data from CryptoQuant indicates that XRP whales are actively buying tokens as the price hovers near its yearly lows. This accumulation pattern is often associated with bottoming phases, as whales tend to accumulate before potential recoveries. The Spot Taker Cumulative Volume Delta for XRP has turned buyer-dominant, further suggesting increased purchasing interest from these large holders.

Increased Activity on South Korean Exchanges

South Korean exchanges, particularly Upbit, are witnessing a surge in XRP withdrawals. Upbit, a major hub for XRP trading, is experiencing its first significant increase in XRP outflows since 2023. This uptick in withdrawals, occurring after a short-term price decline, suggests a potential shift in market behavior.

Technical Analysis and Key Price Levels

According to crypto analyst CasiTrades, XRP is currently defending its macro 0.5 Fibonacci support level near $2.03. Maintaining support above $1.97 is crucial to avoid a deeper retracement. The macro resistance level stands at $2.41, and a break above this level could trigger a bullish scenario with potential targets near $2.75 and $2.90. Conversely, failure to hold the $1.97 support could lead to a move toward $1.64.

wXRP Launch and Cross-Chain Functionality

The launch of wXRP by Hex Trust could provide support for XRP’s price by expanding its accessibility across multiple blockchains, including Ethereum, Solana, and Optimism. By enabling cross-chain trading and DeFi participation, wXRP has the potential to attract more retail and institutional activity. The initial $100 million in total value locked could help stabilize pricing and reduce slippage, while the regulated custody framework adds confidence for large investors.

Potential Impact on XRP Liquidity

The combination of whale accumulation, increased activity on South Korean exchanges, and the launch of wXRP could collectively boost demand for XRP. Increased utility, easier cross-chain transfers, and improved market infrastructure could contribute to upward price momentum over time. The availability of XRP on multiple chains may also create new arbitrage opportunities, further improving liquidity.

Conclusion

XRP is showing signs of potential recovery, driven by whale accumulation and increased utility through initiatives like wXRP. While technical analysis points to key support and resistance levels, the underlying market dynamics suggest a possible shift in sentiment. The coming weeks will be crucial in determining whether these factors can translate into sustained upward momentum for XRP.

Related: XRP Signals Potential Price Target

Source: Original article