Despite a recent downturn in XRP‘s market capitalization, data reveals that large stakeholders are opting not to sell but rather to increase their holdings. According to Santiment, the number of wallets on the XRP Ledger network holding at least 1 million XRP has surged to a yearly high of 2,147.
Record Number of Large XRP Wallets
A significant portion of these investments occurred during a market correction, which saw XRP’s price fall to $1.27. The data suggests that addresses with substantial balances are taking this period of price weakness as an opportunity to expand their positions.
The most pronounced activity was recorded in the final days of October. In the last ten days, 28 new wallets reached the threshold of 1 million XRP, with 18 of these emerging in the final three days of the reporting period. This pattern indicates that large investors are strategizing for the long term, unperturbed by short-term volatilities.
“The number of high-balance wallets continued to rise even as prices fell, reaching an annual peak with 2,147 addresses holding over 1 million XRP.”
Implications of Buying During Price Weakness
Unlike capital seeking short-term gains, major investors often perceive periods of weak prices as buying opportunities. The recent trend within XRP confirms this behavior, as the rising wallet numbers indicate systematic accumulation and limited liquidation.
The simultaneous rise in institutional and high-volume purchasing interest amid declining prices could suggest, according to some analysts, a possible precursor to a long-term market bottom. Consequently, the current state of XRP is monitored not just for price movements but also for on-chain data signals.
“Despite the price retracement, the accumulation by large investors suggests that the market finds support at lower levels.”
Key Price Levels to Watch
Analysts suggest that three key price thresholds will be crucial in the days ahead. The initial range is considered to be between $1.20 and $1.25, deemed essential for identifying a possible market bottom. If the price remains above this band and million-dollar wallet numbers don’t fall below 2,140, a long-term bullish outlook might remain intact.
The second key level stands at $1.30, with a recovery past this point signaling potential short-term strengthening. The third price point is $1.40. If the price holds above this level amid continued inflows from major investors, expectations that a market bottom has been left behind could solidify.
The sustainability of XRP’s current trajectory will hinge on how well major capital can maintain these critical price zones in forthcoming market movements.
