Significant accumulation of the XRP token by major investors, often referred to as whales, is occurring as the digital asset shows signs of recovery following a recent price dip.
Data indicates an unidentified whale executed a substantial withdrawal, removing over 82 million XRP, valued at approximately $246 million, from the Kraken exchange. This large-scale movement off an exchange platform is typically interpreted as a strategic accumulation play rather than preparation for immediate selling.
The accumulation coincides with a notable price rebound. After dropping to $2.92, XRP recovered to trade above the $3.00 mark, suggesting renewed buying pressure potentially fueled by this whale activity.
Historically, August has been XRP’s weakest performance month with an average return of just 1.07%. The current aggressive accumulation signals a possible shift in investor confidence, contradicting the typical seasonal trend.
Market observers are closely watching the potential catalyst of U.S. Securities and Exchange Commission approval for a spot XRP exchange-traded fund (ETF). Such approval is anticipated to be a major driver for institutional participation and could significantly bolster XRP’s price.
The ongoing large withdrawals of XRP tokens from cryptocurrency exchanges like Kraken directly impact market supply. Reducing readily available supply on exchanges, while demand increases through accumulation, is generally seen as supportive for future price appreciation.