XRP has resumed its uptrend, showing a massive price resurgence. However, recent on-chain data showcased by popular crypto analyst Ali Martinez shows that XRP whales have dumped massive amounts of tokens in the last two days.
Notably, the data shows that whales have sold about 150 million XRP, worth over $300 million, in the past 48 hours, hinting at weakening investor interest.
The data tracked the wallets of large XRP holders, showing a massive decline in holdings among wallets holding 1 million to 10 million XRP, as they increasingly exit the market.
These massive sell activities from whales have raised curiosity about the motive behind the repositioning. While the move appears to have not had any negative impact, XRP has only shown rapid price resurgence after the sales.
XRP sees dramatic 9% surge
Despite the aggressive selling pressure from these wallets, XRP’s price has unexpectedly surged over the last day.
With XRP showing a significant daily increase of about 8.72%, it appears that new demand has absorbed the supply provided by the whales who sold. As of writing, XRP is trading at $2.15, according to data from CoinMarketCap.
In addition, there are chances that the rapid XRP surge is caused by broader market conditions temporarily overshadowing whale activities.
XRP ETFs driving demand
Despite the huge XRP sell-offs made by large holders, the token has still regained its bullish momentum, thanks to the heavy institutional demand driven by the recently launched XRP ETFs.
Since the launch of the first spot XRP ETF in November, the ecosystem has continued to see increased institutional demand amid renewed interest.
The strong daily performances recorded by the ETFs, coupled with major developments from Ripple, have continued to drive adoption for XRP.
Although the token has yet to recover from the series of corrections it has continued to face, analysts are optimistic that the leading altcoin is on track to reclaiming the crucial $3 level.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team