Ripple’s XRP Whales Scoop Up Over 500 Million Coins Amid Market Lull; Can It Boost XRP Price To $5?

XRP traded relatively subdued on Sunday, following a week of sluggish price action.

Earlier last week, the third-largest cryptocurrency by market capitalization experienced a drop, plummeting 35% in a single day before recovering within hours. This sharp dip, however, presented a rare buying opportunity for large investors, who accumulated over half a billion coins.

“Whales seized the opportunity during the recent dip, buying 520 million XRP,” popular analyst Ali Martinez tweeted on Friday.

This accumulation spree comes just days after whales had already acquired 120 million XRP following Ripple’s success in securing key operating licenses in New York and Texas in late January. The back-to-back purchases indicate strong confidence in XRP’s long-term prospects, particularly in light of its recent price action and regulatory advancements.

That said, while XRP’s price remains muted post-crash, several fundamental developments point to the surging interest by whales. As per Ripple’s latest markets report, there has been significant institutional interest and increasing adoption within the ecosystem, reinforcing the possibility of an upward trajectory for XRP.

As per the report, one of the most critical developments has been the filing of multiple XRP-related Exchange Traded Products (ETPs) in the U.S. by firms such as WisdomTree, 21Shares, and Canary. Ripple’s RLUSD stablecoin also saw rapid growth, reaching a $100 million market cap within a month, while trading volume on XRPL’s decentralized exchange surged to $1 billion in Q4 2024.

The firm’s expanding partnerships with major financial institutions, the increasing tokenization of real-world assets on the XRP Ledger, and the anticipation surrounding XRP-based ETFs fuel bullish sentiment.

Furthermore, XRP’s impressive 280% rally in the last quarter of 2024, following President Trump’s election victory after years of regulatory uncertainty, has heightened investor interest. Spot trading volumes skyrocketed from an average of $500 million per day in November to a staggering $5 billion daily in December, even peaking at nearly $25 billion in a single day.

Notably, these factors collectively foster a sustained rally, and with whales showing confidence, analysts expect XRP to surge soon.  According to analyst Egrag Crypto, XRP, currently priced below $3, could see a 1,500% surge, targeting $27, if a trend reversal occurs. 

Using the Bull Market Support Band (BMSB) during an analysis this week, he noted that XRP is above the BMSB, indicating a bullish market. The pundit further pointed to a similar pattern in 2017 when XRP surged 1,500% after touching the BMSB in just four weeks.

XRP was trading at $2.4 at press time, reflecting a 1.1% surge in the past 24 hours.