XRP Whales Accumulate, ETF Speculation Fuels 12% Rally

by

Based on information from Santiment, it appears that the current surge is primarily driven by substantial hoarding of coins by ‘whales’ and escalating anticipation among traders regarding the possibility of an XRP-focused Exchange Traded Fund (ETF) being introduced in the U.S. markets.

Whale Activity Signals Strong Market Confidence

Santiment noted that wallets containing between 1 million and 10 million units of XRP have been steadily increasing their holdings of the asset since November 2024. In the last two months alone, these wallets have accumulated around 1.43 billion XRP tokens, representing a significant 37.4% rise in their total assets.

According to Santiment’s recent update on social media, this group of whales appears to have strong trust in XRP, and their persistent purchases are playing a significant role in fueling the current market surge.

Sean Dawson, who leads research at Derive’s on-chain protocol, shares a similar perspective, suggesting that the potential listing of an XRP ETF this year could significantly boost the positive price trend. He added that as Bitcoin draws investment, some capital might shift towards altcoins such as XRP, thereby intensifying the bullish attitude.

Legal Battle with the SEC Looms Large

The ongoing dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to significantly impact XRP’s market behavior. As noted by Dawson, the approaching deadline for the SEC to file an appeal in its case against Ripple Labs may continue to shape XRP’s price movements.

According to Dawson, with the new administration being supportive of cryptocurrencies like XRP, the legal situation could undergo a significant shift. A resolution in the ongoing case has sparked optimism among XRP investors and might establish a precedent, paving the way for clearer regulations across the crypto market.

Institutional Interest and ETF Speculation

The hopeful expectation of an XRP Exchange Traded Fund (ETF) has boosted the market’s positive outlook. It was proposed by Dawson that major investors may start considering diversifying their portfolios with altcoins such as XRP, given that Bitcoin is currently strengthening its profits.

According to a new report from JPMorgan, it’s predicted that Exchange-Traded Products (ETPs) based on XRP could accumulate between 4 billion and 8 billion dollars in assets within the first six months of being traded. Interestingly, these XRP ETPs are anticipated to surpass spot Ethereum ETFs in terms of adoption rates, suggesting a strong appetite for investment.

Tight 2024 Consolidation Preceded the Breakout

From January to October, the price difference in XRP was only about 3.8%. This relatively small fluctuation had led to a tight consolidation, setting up the recent breakout. The extended period of low price variation emphasized the significance of patience for XRP investors.

As stated by David Gokhshtein, the creator of Gokhshtein Media, it’s only fitting that the XRP community receives this recognition: “The XRP community deserves it.

Broader Market Outlook

The rising trend of XRP looks hopeful, but it’s essential to note that the broader cryptocurrency sector is quite unpredictable due to its volatile nature. For sustained growth, experts emphasize the importance of several elements including regulatory certainty, economic circumstances, and the eventual outcome of the Ripple vs. SEC lawsuit.

Currently, the significant whale involvement in XRP, combined with increasing institutional attention and ETF discussions, places XRP among the leading cryptocurrencies expected to perform well in the crypto market up until 2025.

Read More

2025-01-16 19:53