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XRP’s momentum is also given by the selling of investors trying to take profits.
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XRP reached $1.26, a price not seen since November 2021.
The XRP Cryptocurrency reached a price of $1.26 this week, a value not seen since November 11, 2021, driven by the activity of large holders.
Santiment, a market analysis firm, suggests that this rebound is due to massive accumulation by significant portfolios, which he qualifies as “whales and sharks,” who own between 1 million and 100 million tokens.
In the last week, these entities have collectively accumulated 453.3 million more tokenswith an approximate value of 526.3 million dollars, according to data from that organization.
Santiment explains that this rise in the price of XRP has not only been influenced by the accumulation of these large wallets, but also by selling by retail investors looking to make quick profits.
According to the firm, portfolios with less than 1 million XRP have sold 75.7 million tokens in the same week, which is equivalent to approximately 87.9 million dollars.
Historically, the tendency of a cryptocurrency growth in market capitalization has been observed when its major shareholders increase their holdings and confidence in the asset, while fear, uncertainty and doubt (FUD) among small investors further drives this trend, Santiment says.
This behavior has been evident in the case of XRPcurrently the sixth largest cryptocurrency by market cap.
Santiment attributes the rise of XRP to the movements of whales, sharks and retailers. Source: Santiment.
Other factors boost XRP
Although what Santiment says refers only to the behavior of large XRP holders and retail investors, the recent rise in the price of the cryptocurrency It has also been influenced by several external factors.
Relevant court announcements and rulings this year have played a crucial role. As CriptoNoticias reported, XRP is approaching its highest price of the year and I could get over it at any time.
The rise of XRP is the result of multiple causes. Firstly, the increase in the price of Bitcoin/” target=”_blank” rel=”noreferrer noopener”>bitcoin (BTC), which has the largest market capitalization, tends to drag other cryptocurrencies with it.
Due to their smaller capitalization, altcoins like XRP tend to be more volatile and can experience greater percentage increases with the bullish movement of BTC. Additionally, the injection of liquidity due to interest rate reductions by the US Federal Reserve has benefited the broader market.
On the other hand, the political landscape has also played its part. Donald Trump, US president-elect, promises a more favorable position towards cryptocurrencies, including the removal of Gary Gensler, the current chairman of the SEC, known for his critical approach towards the industry.
On the other hand, Ripple, the company behind XRP, has been making progress on several fronts. The introduction of RLUSD, its stablecoin, and educational projects add value and visibility to the Ripple ecosystem, potentially boosting the value of XRP in the market.
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