Altcoins
Why did 860,000 XRP investors choose the altcoin this month?
- The number of XRP whales has increased over the past month
- This, despite the decline in the value of crypto
Number of XRP Investors holding between 1,000 and 1,000,000 tokens have increased over the past month, despite the altcoin’s value falling. This, according to Santiment data for the above period.
Source: Santiment
In fact, Santiment found that this cohort of XRP holders totaled 860,000, having increased by 0.23% over the past 30 days.
This growth, although minimal, is remarkable, as it follows a sharp decline in the number of XRP whales that make up this category of its investors.
The data also revealed that at the start of the year, the number of XRP whales holding between 1,000 and 1,000,000 XRP tokens was 867,000. This number gradually fell until reaching the lowest level since the beginning of the year, at 858,000, on April 3, after which it began to increase.
XRP and its potential
An increase in an asset’s whale count is significant because it often precedes a rise in its price. Although the recent market downturn affected XRP and caused it to suffer a 7% loss in value, demand for the altcoin persists among market participants.
Its main momentum indicators on the daily chart confirmed this. For example, Chaikin Money Flow (CMF) has been trending upward despite falling prices.
Realistic or not, here it is Market capitalization of XRP to BTC terms
This indicator tracks the flow of money into and out of an asset. When it rises while an asset’s price falls, a bullish divergence forms. This means that buyers are accumulating the asset despite falling prices. This may be because they believe the price drop is temporary or represents a buying opportunity.
However, the decline of XRP revealed that selling pressure was high. However, the rise in CMF signaled that if buying momentum continues to build, it could eventually outpace the token’s sell-off, triggering a price rally.
Source: XRP/USDT, TradingView
The possibility of this happening in the near term was confirmed by the position of XRP’s MACD line (blue) at press time. It crossed the signal line (orange) on April 21 and has since moved in an uptrend. When an asset’s MACD line is above its signal line, it is bullish. This indicates that market momentum is increasing in a positive direction.
However, XRP’s MACD and signal lines remained below the zero line at press time – a sign that bearish influence was still significant in the market.