On-chain data shows the XRP sharks and whales have been accumulating as the recent rally in the token's price has occurred.
XRP Sharks & Whales Are Backing The Current Rally In The Asset
According to data from the on-chain analytics firm Santiment, the 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 investor cohort in the market is holding in their wallets as a whole right now.
In the context of the current discussion, the 100,000 to 1 billion token group is of interest. This cohort naturally includes all investors or addresses who are carrying at least 100,000 and at most 1 billion XRP in their balance.
At the time of writing, this range converts to about $69,000 at the lower end and $690 million at the upper end. The holders that carry such large amounts are popularly called the sharks and whales (with the sharks obviously being the smaller cohort of the two).
Here is a chart that shows the trend in the 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 displayed in the above graph, the XRP sharks and whales addresses hit a low last month at the same time as the asset's ratio with Bitcoin had reached a bottom. At these low prices, the cohorts participated in some rapid accumulation, leading to their holdings shooting up.
In the period since this buying started, the cryptocurrency has enjoyed a sharp rally. From the chart, it's also visible that the sharks and whales aren't done with the asset just yet despite all the price increases it has already seen so far, as their holdings have continued to trend up recently.
After the latest rise in the indicator, these humongous entities now control about 45.8% of the entire circulating supply of the asset, which is the highest level for the year 2023.
During the last 24 hours, XRP has registered a further 11% uplift and so far, the sharks and whales haven't shown any reaction to it. Further buying or even sideways movement at these highs would naturally be an optimistic sign for the asset.
One obstacle that the coin could face, though, is the social dominance spike that it has just seen with the latest leg in the rally. The "social dominance" is a metric that tells us how the social media talk related to XRP currently compares against that of the top 100 coins by market cap.
As is visible in the graph, this indicator has now hit its highest point since mid-July, suggesting that the coin is receiving considerable attention right now. Historically, such hype has often not been a good sign for rallies, as tops have become more probable to form in these conditions.
XRP Price
Following the latest rise, XRP has managed to break through the $0.69 mark for the first time since the start of 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
Source: NewsBTC.com
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