The price of XRP increased 500% in less than three months.
Currently, a bullish sentiment prevails in the cryptocurrency market.
Although XRP, the cryptocurrency issued by the company Ripple, started the day higher in correlation with bitcoin (BTC) and altcoins, it could be about to retreat. This is suggested by the new movements of its whales: those investors who have multimillion-dollar holdings in this currency.
“XRP whales prepare for profit-taking,” notes a report from analyst Woo Minkyu shared by CryptoQuant today, January 20.
The analysis is based on whale transactions of XRP to Binance, the most traded cryptocurrency exchange globally. In general, these movements are made to sell their holdings.
“Significant price movements often coincide with an increase in whale activity,” the analyst maintains. Due to the large size of trading volumes that these investors handle, their sales usually drag the price down and their purchases up.
The recent increase in whale transactions to the exchange comes amid the sharp rise in the price of XRP to more than $3.2 (USD). These movements can be seen in the following graph.
“Historically, similar spikes in whale activity have been followed by notable market actions, often indicating profit-taking by whales,” Woo Minkyu details.
For the specialist, this currently suggests a high probability that whales may be positioning themselves to take profits. “Monitoring these trends closely can provide greater clarity on potential XRP price movements in the near future,” he concludes.
In other words, large XRP investors may be viewing current prices as an opportunity to lock in the gains made so far.
XRP set a new record price this week
XRP price has increased more than 500% in less than three months. In addition to such performance, it has stood out this week for momentarily exceeding USD 3.31. Until then, that level, which the crypto asset had not reached for seven years, was its all-time high recorded on most exchanges.
This price increase occurs while Hopes grow that an XRP exchange-traded fund (ETF) will be approved in the United States this year. Today’s presidential inauguration of Donald Trump motivates these expectations, due to his stance in favor of the growth of the cryptocurrency industry.
Rumors have also emerged this week that Trump is receptive to the idea of including US-created cryptocurrencies, such as XRP and SOL, in the federal reserves. It should be taken into account that, at the moment, the president has not made any statement confirming this, as reported by CriptoNoticias.
What Trump has promised during the campaign is to integrate bitcoin into federal reserves and turn the United States into the “capital” of the digital asset industry. With this panorama, bullish sentiment emerges in the marketwith BTC today marking new all-time high prices ahead of the presidential inauguration.
In addition, Ripple launched its own stablecoin a month ago, which can generate more profits for the company and raises enthusiasm about XRP. With this confluence of factors, there are specialists who, despite the risks of massive profit-taking, predict further price increases for the cryptocurrency before the arrival of the next bear market.
