Whales drive XRP to an yearly high – Is the altcoin still undervalued?

• XRP outperformed other coins to reach a yearly high.
• The altcoin’s wallets with over one million tokens held approximately 45.61 billion XRP.

Since hitting a local low of $0.49 earlier this month, Ripple’s [XRP]

ledger has experienced a sustained uptrend, reaching a yearly high. This performance has stood out in the market over the past day, outperforming all major cryptos.

XRP outperforms other cryptocurrencies

In the past 24 hours, most coins including Bitcoin’s [BTC] have experienced a sharp decline, with XRP standing out as an exception. XRP surged by a whopping 15.3% to trade at a yearly high of $0.80.

This showed that XRP holders and investors are more bullish than the rest of the market, while market conditions are skewed toward an XRP rally.

The current uptrend raises questions about the factors driving it. According to Santiment, one factor that can be credited with this market resilience is the Whale and shark’s increased accumulation.

Ripple wallets accumulate 45.61B tokens

Based on Sentiment’s data, wallets with at least 1 million XRP currently hold a total of 45.61 billion tokens.

According to this analysis, it’s the highest amount held since June 2018. Such a shift in whale sentiment suggests that large holders are highly bullish and are confident with the altcoin’s future value.

As such, in the last two years, whales, and sharks have reversed the trend and accumulated 3.44 billion more tokens. This marked an 8.16% increase in total holdings among whales and sharks.

Therefore, with the market getting into profitability as traders have enjoyed 46.66% returns over the past week, it seems increased accumulation is paying off.

Impact on price charts

As observed above, accumulation by large holders is finally paying off, with the altcoin outperforming most coins in the market.

This bullishness among large holders is further evidenced by the fact that the altcoin’s MVRV Long/Short Difference has risen from -2.7% to 1.21%. When this metric rises from negative to positive, it implies that long-term holders are confident with the altcoin’s prospects.

With most long-term holders in profit, they continue to hold their positions anticipating more gains.

Additionally, XRP’s NVT Ratio has declined over the past week from 136.8 to 44.9. This suggested that investors are actively accumulating, and the blockchain is seeing higher usage. Equally, it suggested that the altcoin is still undervalued, thus there’s still buying opportunity.

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Simply put, the higher accumulation levels by whales and sharks have pushed XRP to significant gains on price charts.

With the altcoin enjoying positive sentiment, the XRP will find the next resistance at $0.85. If it breaches the level, it will reach $0.94.