XRP has seen an 8% spike in the past day as data shows that sharks and whales have loaded their bags to a 3-month high.
XRP has enjoyed a sharp rally over the past 24 hours.
Over the past day, the cryptocurrency industry as a whole has seen an uptick, led by Bitcoin approaching the $30,000 level. XRP was no exception, as the token had returns of 8% during this period, which is actually more than BTC itself has managed so far.
The chart below shows how XRP has performed over the past few days:
The asset has observed a sharp rise today | Source: XRPUSD on TradingView
At the peak of this sharp rally, XRP had broken above the $0.53 level, but has since retreated below the $0.52 level. Even with this retraction, though, the cryptocurrency’s rise remains impressive.
XRP sharks and whales have piled in and are leading this run
Many are wondering if the current rally is only temporary or if it is here to last. The on-chain analytics company Sentiment shared some data that may provide some hints about the viability of the explosion.
The first indicator of relevance here is “Supply Distribution”, which tells us what percentage of the asset’s total circulating supply each group of market holders currently carries in their combined wallets.
In the context of the current discussion, sharks and whales are the cohorts of interest. According to Santiment, these smart money pools are defined within the range of 10,000 to 10 million XRP.
Here is a chart showing the trend in combined XRP shark and whale holdings over the past few months:
Looks like the value of the metric has been heading up in recent weeks | Source: Santiment on X
From the chart, it can be seen that Bitcoin sharks and whales have been piling up recently as their holdings have reached their highest level in about three months.
Santiment believes that this buying by these large holders is mainly responsible for the latest price increase in the cryptocurrency. So far, these key holders have not sold and taken their profits, which is definitely a positive sign.
If the rally continues in the coming days, the rally could well go further. However, there is a negative signal in the market as the social dominance has been shot with this boom.
Social dominance refers to the share of social media conversation that XRP occupies among the top 100 cryptocurrencies. The rising metric indicates that the allocation of the asset has increased, as discussions related to it have increased.
This may be a sign that traders are starting to advertise for the rally. Overhype, however, has historically been a bearish signal, as peaks often form to coincide with it. As shown in the chart, the peak in the asset earlier in the month had also occurred as social dominance had seen a rise similar to now.
Given these mixed signals, it is hard to say for sure whether XRP can continue its run in the coming days or not.
Featured image from Shutterstock.com, charts from TradingView.com and Santiment.net
