On-chain data shows that XRP sharks and whales have been piling up as the token’s recent price rally.
XRP sharks and whales support the asset’s current rally
According to data from the on-chain analytics company Feeling, large XRP holders have participated in buying recently. The relevant indicator here is the “Supply distribution“, which measures the percentage of the total supply that each cohort of investors in the market currently holds in their portfolio as a whole.
In the context of the current debate, the group of tokens from 100,000 to 1 billion is of interest. This cohort naturally includes all investors or addresses that hold at least 100,000 and at most 1 billion XRP in their balance.
As of this writing, this range equates to approximately $69,000 at the low end and $690 million at the high end. Holders who hold such large sums are commonly referred to as sharks and whales (sharks obviously being the smaller cohort of the two).
Here is a graph that shows the trend in supply distribution specifically for these sharks and whales over the past few months:
Looks like the value of the metric has registered some increase in recent days | Source: Santiment on X
As the chart above shows, XRP shark and whale addresses hit a low last month, the same time the asset’s ratio to Bitcoin bottomed out. At these low prices, cohorts participated in rapid accumulation, which led to an explosion in their holdings.
Since this purchase began, the cryptocurrency has seen a strong recovery. The chart also shows that sharks and whales are not yet done with this asset, despite all the price increases it has already seen so far, as their holdings have continued to grow recently.
After the latest rise in the indicator, these huge entities now control around 45.8% of the entire circulating supply of the asset, which is the highest level for the year 2023.
In the last 24 hours, XRP saw an additional 11% increase and so far the sharks and whales have shown no reaction. Additional buying or even a sideways move at these highs would naturally be an optimistic sign for the asset.
However, one obstacle the coin might face is the spike in social dominance it just saw during the latest leg of the rally. THE “social dominationis a metric that tells us how social media discussions related to XRP currently compare to those of the top 100 coins by market cap.
As the chart shows, this indicator has now reached its highest level since mid-July, suggesting that the coin is currently receiving considerable attention. Historically, such hype has often not boded well for rallies, as highs have become more likely to form under these conditions.
Following the latest rally, XRP managed to cross the $0.69 mark for the first time since early August.
The value of the asset has been going up during the past few days | Source: XRPUSD on TradingView
Featured image from Sense Atelier on Unsplash.com, charts from TradingView.com, Santiment.net