Cryptocurrency XRP has reversed its month-long decline, climbing back above the crucial $2 threshold after large investors acquired over 510 million tokens worth more than $1 billion in just one week.
What to Know:
- Large XRP investors ("whales") have purchased over $1 billion worth of tokens in a week
- The cryptocurrency recently entered an "anxiety zone" with its Net Unrealized Profit/Loss metric dipping below 0.5
- XRP's price has increased 11.7% in recent days despite facing ongoing resistance from a month-long downtrend
Major XRP investors holding between 10 million and 100 million tokens have significantly increased their positions, collectively adding 510 million tokens to their wallets.
This massive accumulation, valued at over $1 billion, has boosted total whale holdings to 7.38 billion XRP according to data from blockchain analytics firm Santiment.
The substantial buying pressure comes despite XRP entering what analysts term the "anxiety zone," a technical condition that often precedes market corrections. This classification occurred when XRP's Net Unrealized Profit/Loss (NUPL) metric dropped below 0.5 for the first time in five months, data from Glassnode shows.
"Anxiety zone" classifications historically signal increased caution among investors and frequently precede periods of price volatility.
Market Conditions and Technical Analysis
The recent price action occurs against a backdrop of improving global market sentiment. U.S. President Trump's decision to pause reciprocal tariffs for 90 days has boosted financial markets broadly, potentially providing XRP with momentum to overcome bearish technical indicators.
XRP had previously erased most gains made earlier this year during its prolonged downtrend. The recent recovery suggests a potential trend reversal if buying momentum continues from institutional players.
"The significant accumulation has increased the whales' total holdings to 7.38 billion XRP," notes the Santiment report. This level of conviction from major holders typically provides strong price support when combined with favorable market conditions.
Technical analysts identify $2.14 as the immediate resistance level XRP must clear to confirm its bullish trajectory. Should the upward momentum continue, the next target would be $2.27, which would effectively break the cryptocurrency from its month-long downtrend pattern.
Trading data reveals XRP currently trades at precisely $2.00, marking an 11.7% increase over recent sessions. While this represents a significant recovery, the token remains influenced by lingering bearish pressure.
The critical support level rests at $1.94. A breakdown below this threshold could trigger further selling, potentially driving prices toward $1.70 and invalidating the current bullish outlook, according to charts from TradingView.
Outlook and Implications
XRP's price recovery coincides with broader cryptocurrency market improvements but remains uniquely influenced by its large-holder activity. The substantial accumulation by whale addresses suggests strong confidence in XRP's long-term prospects despite recent technical weakness.
If the current whale accumulation trend continues, analysts expect XRP's price to respond positively as increased demand from these key investors absorbs available supply. This dynamic could accelerate once broader market sentiment improves further.
The combination of substantial whale support, technical recovery, and improving macro conditions creates a potential foundation for XRP to continue its upward trajectory.
Final Thoughts
XRP's price recovery above $2 demonstrates the significant influence of large investors on cryptocurrency valuations. With over $1 billion in whale accumulation occurring in just one week, XRP has managed to reverse its downtrend despite technical indicators suggesting caution. The token's future price action will likely depend on whether these large holders continue their buying activity.