Strong Demand for XRP Accumulation as Ripple Price Hits 4-Month High

XRP rose to $0.66 on Wednesday, up 8% over the past 24 hours from $0.60, a level last seen in the third week of March.

The latest bullish price action comes amid major developments in the XRP ecosystem and renewed investor optimism in the market as the rallying trend intensifies.

Accumulation of XRP

There has been a significant increase in the number of wallets with at least 10,000 XRP over the past five weeks. According to the latest data shared by Santiment, this figure has reached a six-month high of 279.4 thousand addresses.

This sharp increase in high-value portfolios indicated a growing hoarding trend among investors, which could reflect bullish sentiment towards XRP.

Notably, the correlation between these large holdings and XRP’s market value has been surprisingly consistent throughout 2024. According to crypto analytics platform On-Chain, this trend suggests that as more high-profile investors accumulate XRP, the market value of the asset tends to increase. in accordance with.

The SEC filing on Tuesday also appears to have induced a shift in sentiment among XRP holders. The filing in question indicates plans to review its Binance complaint, which could affect tokens like SOL and MATIC. This review may delay decisions on whether these tokens are unregistered securities.

As a result, XRP traders now believe the SEC could ease its stance against fintech company Ripple as its lawsuit nears resolution. Speculation about a possible deal between the two sides was widespread before their closed-door meeting on July 25, but with no real outcome.

1 Billion XRP Unlocked

Another major ecosystem development is Ripple’s scheduled release of 1 billion XRP tokens in August. This practice is part of the company’s strategy to maintain transparency in the release of its holdings, which began in 2017 when Ripple allocated 55 billion XRP tokens to various escrow accounts.

The upcoming unlock will release approximately $641 million worth of XRP tokens at current prices. While increasing the supply of tokens would normally lower the price, some research argues that it could actually increase an ongoing uptrend due to increased liquidity.

Chris Burniske, partner at venture capital firm Placeholder and former crypto lead at Ark Invest, recently explained:

“Large chip unlocks are a complex event that is linked to market psychology. Simply put, large unlocks can be bullish catalysts in bulls and bearish catalysts in bears. They unlock liquidity to continue the prevailing trend.”

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