- XRP’s price surge can be attributed to the growing whale accumulation, who now own 85% of the total supply.
- Open Interest reached a three-month high, suggesting heightened speculative activity.
Ripple [XRP] has been one of the top gainers of the last few days after its price hit $0.60. This price increase was a 36.45% jump within the previous seven days.
As surprising as this was, AMBCrypto was able to spot the reasons for the hike. According to on-chain data provider Santiment, there was a significant climb in the holdings of addresses who owned over 100,000 XRP.
Go big or go home
This group of investors, known as whales and sharks, have a big influence on prices. In simple terms, if the assets held by this cohort drop, the price of a token would most likely tumble.
Therefore, the increase in accumulation created buying pressure for XRP, and was responsible for the hike.
The rise also revealed that these sharks and whales now own 85 % of the total supply. This represented the highest point in 11 months.
Source: Santiment
Should we see a scenario where whale holdings continue to jump, the value of the token might revisit $0.63 or possibly trade higher.
Another reason the token could hit this price is the imminent launch of the cryptocurrency’s reference rates and real-time indices on the 29th of July.
However, it is important to mention that these indices are not tradable futures products. Instead, they provide clear pricing data for the assets involved.
XRP stagnant coins are now in motion
Meanwhile, in the crypto derivatives market, XRP’s Open Interest (OI) had hit $233.85 million. This was the highest value the OI has reached since the 12th of April.
OI refers to the total value of open contracts in the market. When it increases, it means speculative activity around a token has jumped, and liquidity allocated to contracts is rising.
But if it decreases, it implies otherwise. From a price perspective, the rise in OI, if sustained, could further back XRP’s price increase. If this is the case, the value of the crypto can reach $0.63 as mentioned earlier.
In addition to this, there has been a notable spike in the 90-day MDIA, This acronym stands for Mean Dollar Invested Age.
As the name implies, the metric is the average dollar invested into the market cap of a cryptocurrency.
Source: Santiment
In previous bull markets, a rising line in the MDIA means whales are moving idle coins back into circulation. Should this continue, XRP’s chances of a higher price increase.
Read Ripple’s [XRP] Price Prediction 2024-2025
Going by this analysis, the value of the token might continue to extend it rally as stated in AMBCrypto’s previous article.
However, beyond the potential rise to $0.63, there is a chance XRP might attempt to revisit $0.72 — a level it last reached in March.
