Whale movements in XRP are experiencing an uptick in December as its on-chain activity and trading volume witnessed an increase. According to Santiment, whale purchases into XRP rose from 16.7% to 18.3% in the last five weeks. The development indicated that whales are accumulating more XRP tokens by making use of the market dips.
A sudden spurt in whale activity is usually an indicator that something larger could be brewing. However, despite the big purchases, XRP’s price movements are yet to materialize on the greener side of the spectrum.
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“And as soon as its price started to retrace, whale addresses holding 100k to 10m XRP began to really increase their holdings in a hurry. It wouldn’t be terribly surprising for XRP to have another run in it, considering the increase in these whale addresses’ supply held went from 16.7% to 18.3% in 5 weeks,” tweeted Santiment.
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Will XRP Breach $0.40 Levels?
The cryptocurrency markets turned to the green after the CPI data was published on Tuesday. The CPI data came out better than expected showing inflation at 7.1% which made the markets trade in the green.
XRP jumped from $0.37 to $0.39 during the brief rally but failed to break its resistance levels of $0.40. The crypto is at $0.39 currently and the markets are retracing in price after the CPI report. The crypto briefly climbed above the $0.40 mark three weeks ago but again slipped below $0.39 thereon.
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If the sudden spurt in whale activity didn’t take XRP above $0.40, nothing else could during this ongoing bear market. For the crypto to break its resistance levels and catapult further, the markets need to remain in the green another day.
The upcoming interest rate hike by the Feds on Wednesday could drag the markets down this week. Therefore, XRP has a lesser chance of going above the $0.40 mark in the coming days.
It is advised to wait and watch how the markets react to the Fed’s interest hikes before taking an entry position into XRP.
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At press time, XRP was trading at $0.39 and is up 2.1% in the 24 hours day trade. It is down 88.5% from its all-time high of $3.40, which it reached in January 2018.