Ongoing volatility across the cryptocurrency market continues to hamper XRP from posting a rally, as recent upward attempts face significant resistance at the $2 price level. However, this persistent downward trend has not entirely crushed the sentiment of investors, especially whale holders.
Large Holders Of XRP Are Stepping Back In
XRP has been in a downward trend for the past few weeks due to a market drawdown in October. After several weeks of subdued price performance and failed upward attempts, key investors are beginning to exhibit positive sentiment towards the leading altcoin.
As observed in the report from Steph is Crypto, a market expert and trader, large investors, also known as whale holders, are making their presence felt once again. Despite the ongoing bearish action of the XRP’s price, there is a steady resurgence in accumulation among the cohort.
While this shift signals growing confidence of deep-pocket investors, it also suggests that they are likely repositioning themselves in anticipation of a broader market move upward. When whale investors start to buy again, it often precedes upward spikes, which raises the question of whether the accumulation could serve as the foundation for the altcoin’s next major direction.
According to the expert, the renewed buying pressure is triggered by large investors holding between 100 million XRP and 1 billion XRP. After days of significant adoption from the group, the total number of coins held by them grew from 8.11 billion to 8.23 billion XRP, valued at approximately $150 million.
A similar resurgence in sentiment and investor activity is also observed among those holding between 10 million and 100 million XRP. Data from the chart shows that these investors now hold about 10.90 billion compared to the 10.88 billion a few days ago.
Despite large investors buying again, Steph is Crypto believes that the renewed accumulation is more of a cautious move than a bullish move. However, should the trend continue over the following days or weeks, the altcoin may attract enough momentum for an upward move.
Nearly Half Of The Supply In Loss
With XRP’s price declining and trading below the $2 mark, a lot of coins are starting to show major losses. According to on-chain data, the profitability of holders has sharply declined amid the ongoing bearish phase. In a previous post, Steph is Crypto highlighted that nearly 50% of the altcoin’s total supply is now underwater, suggesting a shift in attitude where patience and selectivity are replacing optimism.
The chart shared by the expert shows that the share of XRP supply currently in profit has dropped to 52% following weeks of consistent declines. While nearly half of the total supply held by investors is sitting at a loss, this development increases the risk of panic-driven selling pressure during periods of weakness, as seen in the past.
However, this cooling in profitability often marks a pivotal phase, as it could still act as a trigger for a notable rally in the upcoming days or weeks. According to the expert, the last time profitability dropped to this level was in November 2024, just before a major upside expansion.
Featured image from Freepik, chart from Tradingview.com
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