XRP hits 6-year high: Will whales push the token to $3 now?

• XRP whale activity reaches a new all time high.
• Ripple whales have purchased 160 million XRP tokens worth $380 million.

Since hitting a local low of $1.5 a week ago,  Ripple [XRP] has experienced a sustained rally reaching a 6-year high of $2.875.

In fact, as of this writing, XRP was trading at $2.74. This marked an 89.17% increase over the past week. On monthly charts, the altcoin has surged by a whopping 445.05%.

The recent market conditions have left analysts and all key players wondering what’s driving the rally. One factor that stands out during this rally is a surge in whale activity.

XRP whale activity hits all-time high

In his analysis,  Cryptoquant analyst Kriptolik observed that XRP whale activity has reached an all-time high.

According to him, since the altcoin’s launch, it has never caught the attention of whales to this extent. Thus, this newfound interest among large holders indicates that XRP has now been embraced as a valuable asset by whales.

As such, throughout the past week, whales have been actively accumulating. These whales have purchased an additional 160 million XRP tokens over the past weekend worth $380 million, according to Ali Martinez’s analysis of Santiment.

When whales turn to accumulate, it suggests that the market is highly confident with an asset and sees massive potential.

This market confidence and interest among whales was especially evidenced by a surge in whale transaction count (>$100k). Over the past week, this has surged from a low of 187 to a high of 1806 at press time.

Impact on price charts?

Usually, increased whale activity has potential impacts on an asset’s price direction. If whales are selling, it tends to increase selling pressure, thus driving prices down.

On the other hand, if whales are accumulating, it results in a supply squeeze which potentially pushes prices up.

In this case, with XRP surging to become the third largest crypto by market cap, it would be true to say that these whale activities are mainly accumulation.

This was supported by a reduced whale to exchange transactions. Thus while whales are engaging with the market, their transactions are not sent to exchanges but off exchanges. Such market behavior points towards an accumulation trend.

Read Ripple [XRP] Price Prediction 2024-2025

Simply put, XRP is currently experiencing strong market favorability and bullish sentiment across all participants including whales. These market conditions could set the altcoin for more gains on price charts.

With a strong upward in place, the next short-term target for XRP is $3.