Why did 860,000 XRP investors choose the altcoin this month?

• XRP whale count has increased over the past month
• This, despite the drop in the value of the cryptocurrency

The number of XRP investors holding between 1,000 and 1,000,000 tokens has increased over the past month, despite the drop in the altcoin’s value. This, according to Sentimientos data corresponding to the aforementioned period.

In fact, Santiment found that this cohort of XRP holders numbered 860,000, having increased by 0.23% in the last 30 days.

This growth, although minimal, is noteworthy as it follows a sharp decline in the number of XRP whales that make up this category of its investors.

The data also revealed that at the beginning of the year, the number of XRP whales holding between 1,000 and 1,000,000 XRP tokens was 867,000. This figure gradually fell to the year-to-date low of 858,000 on April 3, after which it began to rise.

XRP and its potential

The increase in the number of whales of an asset is significant as it often precedes a rally in its price. While the recent market crash affected XRP and caused it to suffer a 7% loss in value, demand for the altcoin persists among market participants.

Its key momentum indicators on the daily chart confirm this. For example, Chaikin Money Flow (CMF) has trended higher despite the price drop.

Realistic or not, here is XRP market cap in BTC terms

This indicator tracks the flow of money into and out of an asset. When it rises while the price of an asset falls, a bullish divergence forms. It means that buyers are accumulating the asset despite the price drop. This could be because they believe the price drop is temporary or represents a buying opportunity.

Now, the XRP drop revealed that the selling pressure has been high. However, the CMF surge signaled that if the buying momentum continues to increase, it could eventually overtake the token’s sell-off, leading to a price surge.

The possibility of this happening in the short term was confirmed by the position of XRP’s MACD line (blue) at the time of this publication. It crossed above the signal line (orange) on April 21 and has been in an uptrend since then.

When an asset’s MACD line is above its signal line, it is bullish. It indicates that market momentum is increasing in a positive direction.

However, the MACD and XRP signal lines remained below the zero line at press time, a sign that the bearish influence was still significant across the market.

This is an automatic translation of our English version.