XRP witnesses increased accumulation as supply on exchanges diminishes
According to recent on-chain data, there has been a notable increase in XRP accumulation while the number of tokens held on exchanges continues to decline.
Santiment, a market intelligence platform, has reported that 20 new whales have accumulated between 1 million and 10 million XRP tokens in the past month, bringing the total number of such whale wallets to 1,583.
Additionally, Santiment’s data reveals a significant surge in whale transactions involving at least $100,000 worth of XRP. The number of unique transactions in this category rose by 208% in the past day, from 159 to 489 transactions.
Despite this increased whale activity, the price of XRP has remained relatively stable, showing a mere 0.4% increase in the past 24 hours and trading at $0.478 at the time of writing. The market cap of XRP currently stands at $26.6 billion.
Furthermore, the daily trading volume of XRP experienced a substantial surge of 42%, reaching $770 million.
Santiment’s data also indicates that the inflow of XRP into exchanges increased from 58.66 million to 76 million tokens within a day. Conversely, the outflow of XRP from exchanges saw a significant spike of 564% during the same period, rising from 11.01 million to 73.14 million tokens.
While the increase in exchange inflow suggests that some investors may be taking profits, the surge in exchange outflow indicates that new holders are accumulating the cryptocurrency.
Additionally, the supply of XRP on both centralized and decentralized exchanges has been steadily decreasing since January 30. At present, there are approximately 2.82 million XRP tokens held on exchanges, according to Santiment’s data.
The XRP Relative Strength Index (RSI) currently sits at 43, suggesting that the XRP price is not overbought, and a potential price increase could be expected.
In summary, XRP is experiencing increased accumulation by whales and new holders, as the supply of tokens on exchanges continues to dwindle. Despite this activity, the price of XRP has remained relatively stable, and market indicators suggest potential price movement in the future.