XRP is trying to make a significant recovery after last week's drop, with the altcoin recording a 8% increase in the last 24 hours.
The positive change in the broader market is helping XRP regain its momentum, but the real catalyst seems to be renewed confidence from large investors. This increase in activity from large investors may position the token for a retest of the highs from the past weeks.
XRP whales redeem the altcoin
Buying by large investors has intensified as the coin approached the psychological level of $2.00 earlier this week. On-chain data shows that wallets holding between 100 million and 1 billion XRP have collectively accumulated 620 million XRP in just a few days. At current prices, this accumulation is worth over $1.36 billion.
This aggressive buying at discounted levels indicates that large investors are positioning themselves for a potential recovery and see the recent drop as a buying opportunity rather than a trend reversal. Their renewed confidence signals that potential gains outweigh short-term volatility.
The macro scenario for XRP is also showing significant improvement. The Change in Net Position of HODLers — an indicator that tracks movements among long-term investors — is signaling a positive bias for the first time since mid-October. The indicator has returned to positive territory, signaling that long-term investors have stopped selling and are accumulating again.
Support from long-term investors is crucial to maintain price levels during periods of market uncertainty. Their return provides XRP with a more stable foundation and reduces the likelihood of significant downward movements, preparing the asset for a sustained recovery, should broader market conditions remain favorable.
The price of XRP has a chance of recovery
XRP is currently trading at $2.20 at the time of this analysis, up 8% in 24 hours after bouncing from the intraday low of $2.00. The rebound from this crucial psychological level reinforces positive sentiment and aligns with the intense accumulation by large investors.
Maintaining support at $2.20 places XRP in a strong position to reach $2.36 next. If the token can break through this resistance, the altcoin may rise towards $2.50 and register its highest price in three weeks. The purchase by large investors and support from long-term investors make this scenario increasingly realistic.
However, the failure to maintain investor confidence could still introduce downside risks. If selling pressure increases, XRP could fall back to the support level of $2.02. This would invalidate the bullish scenario and erase recent gains.
The article XRP rises 8% as crypto investors acquire $1.3 billion was first seen on BeInCrypto Brasil.
