In recent days, the institutional demand for $XRP has shown a notable increase, particularly as whale investors are seen ramping up their holdings. Data suggests that between March 22 and March 30, these significant holders increased their share by 1.09%, reflecting a growing confidence in the cryptocurrency.
According to metrics from Santiment, whale accounts witnessed a boost from approximately 11.05 billion $XRP tokens, valued at around $15.47 billion, to about 11.17 billion tokens, currently estimated at $14.86 billion. This shift highlights the dynamic nature of $XRP investments, as whales navigated market fluctuations to bolster their positions.
During this timeframe, the balances of these whales surged by over 120 million tokens, reaching a peak on Saturday, March 28, with holdings hitting nearly 11.21 billion tokens. Such significant movements indicate that institutional and large-scale investors are positioning themselves strategically for future potential growth.
Institutional Investors Lead $XRP Accumulation
A pivotal factor contributing to the rise in whale balances is the renewed interest from institutional investors. In the past week, U.S.-based spot exchange-traded funds (ETFs) related to $XRP reported a net cash inflow of 2.66 million tokens, roughly equating to $3.59 million. This brought their total holdings to around 933.33 million $XRP units.
In addition, $XRP‘s investment products attracted a net cash inflow of $15.8 million last week, raising their total assets to around $2.269 billion. Intriguingly, these investment products have outperformed those of both Bitcoin (BTC) and Solana (SOL), which experienced net outflows during the same period, underscoring $XRP‘s appeal as a strong alternative.
What’s the Impact on Its Price?
The notable increase in whale holdings over the last nine days did not initially translate into positive price movements for $XRP, with the coin witnessing a 6.05% decline, trading at $1.347 at the time of reporting. This decline raises questions about the immediate reaction of the market despite positive accumulation trends by larger investors.
However, recent days have shown signs of a potential price reversal fueled by the increased demand from whale investors. Notably, $XRP‘s price action has formed what appears to be a double-bottom pattern, a classic indication of a potential rebound, assisted by a bullish divergence in the 4-hour Relative Strength Index (RSI). Such technical indicators suggest that the market may be on the verge of shifting, potentially benefiting those who have invested at this pivotal moment.
