XRP has surged a staggering 430% in the past month, reaching levels not seen since 2018, and leaving many crypto traders in awe. The rally began in early November, buoyed by renewed investor confidence following the Republican victory in the U.S. elections. This optimism extended to XRP due to its ties with Ripple Labs, a U.S.-based company.
Whale activity has been instrumental in driving this bullish momentum.
Data from CryptoQuant reveals that large wallet movements to and from exchanges have been at unprecedented levels over the last 30 days. Such whale movements are significant as they influence market trends, with their buying or selling pressure impacting prices.
- High Exchange Inflows: Suggest potential selling activity and bearish sentiment.
- Large Exchange Outflows: Indicate accumulation and a bullish outlook.
“Whale activity often marks local peaks,” CryptoQuant analyst Woominkyu highlighted in a report. Historically, XRP price tops have coincided with spikes in whale-to-exchange transactions. These transactions, marked as red circles in analysis, typically signal profit-taking by whales.
The most recent surge in whale-to-exchange movements was observed as XRP hit a local high of $2.3, suggesting that profit-taking might be imminent or that market activity is intensifying.
Despite this, XRP remains strong, gaining 14% in the past 24 hours and outperforming both Bitcoin and other major cryptocurrencies. Over the weekend, XRP overtook Solana (SOL) and Tether (USDT) to become the third-largest token by market cap, solidifying its remarkable performance in the crypto market.
