In the past three months, Ripple (XRP) addresses with at least 10 million native units have resumed accumulating more, a similar pattern to that which preceded a strong rise for the XRP/USD and XRP/BTC pairs in late 2020.
XRP’s ‘mega whales’ are making a comeback
Since December 2021, there has been a 76% increase in XRP “mega whale” addresses, according to analytics firm Santiment, with a total of 897 million tokens added to their holdings, valued at over $712 million as of Feb. 18.
The platform went on to say that the Ripple (XRP) accumulation over the last three months was the second-largest in the coin’s history. Whales deposited a total of 1.29 billion XRP to their addresses in November–December 2020, which was the first large accumulation.
Surprisingly, the influx of XRP into whale addresses coincided with a price increase against Bitcoin. Between November 1, 2020, and November 24, 2020, the XRP/BTC exchange rate increased by approximately 150%, reaching 3,502 satoshis.
XRP also gained ground against the dollar, with the price of XRP/USD rising by more than 250% to $0.82 in the same time frame. As a result, Santiment noted in the chart above that the recent rise in whales-led accumulation raised the possibility of a similar upside trend in the XRP market.
Nonetheless, it’s important to note that XRP’s big increase in November 2020 was mostly due to Ripple’s decision to buy $46 million worth of XRP to “promote healthy markets.”
The price of XRP is continuing to rise
The current influx of XRP among whales coincided with a minor recovery in recent weeks.
The price of XRP has risen by as much as 65% to $0.91, less than three weeks after it reached a low of $0.55 on January 22, 2022. Nonetheless, the price had dropped to roughly $0.77 as of Feb. 18, indicating that bulls were reeling under the strain of the 50-week exponential moving average (50-week EMA; the red wave in the chart below).
The shorter-term pricing movement also points to a climb toward $1. On the four-hour chart, for example, XRP has been forming what appears to be a bull pennant setup, which is backed up by a symmetrical triangular consolidation.
The bull pennant setup has a simple rule that whenever the price clearly breaks over the structure’s top trendline, it stimulates the price to move upward, aiming for levels above $1.