Data suggests that major stakeholders significantly increased their XRP holdings over the past month, even as the token faced several recent setbacks.
Technical analyst Ali Martinez reported via social media on May 2nd that accounts possessing over 10 million XRP acquired roughly 900 million tokens collectively during this timeframe, signaling underlying bullishness from these large entities.
Context of Recent Market Events
This accumulation phase occurred concurrently with several negative developments for the cryptocurrency.
XRP faced resistance and failed to achieve a price breakout during attempts to surpass the $2.30 level on April 28-29.
Additionally, market sentiment was likely impacted by the U.S. Securities and Exchange Commission (SEC) postponing its decision regarding Franklin Templeton’s application for a spot XRP exchange-traded fund (ETF).
Bearish Indicators and Price Action
Furthermore, the proportion of short positions against XRP reached a monthly peak at the end of April.
There were some mitigating factors, such as XRP successfully defending the $2.20 support level during a brief price test.
At the time of the analysis, the token was trading near $2.22, reflecting a minor decrease over the previous day.
Divergent Whale Activity and Cautionary Signs
Nevertheless, interpreting this whale activity requires careful consideration of other factors.
The positive sentiment among large holders doesn’t appear uniform.
For instance, a significant transaction on April 28 saw one major holder transfer approximately 29.5 million XRP (valued at around $68.7 million) to the Coinbase exchange.
Such large movements onto exchanges often signal potential upcoming sell-offs.
Possible Slowdown in Buying Pressure
Moreover, Martinez’s graphical analysis indicated that the observed increase in whale demand appeared to level off starting around April 29.
This observation suggests that the heightened buying pressure from these large accounts might have already subsided, potentially tempering the overall bullish interpretation of the month-long accumulation trend.
Also Read: XRP Price Predictions Surface as First Spot ETF Launches Globally
