XRP Whale Activity Shows Confidence Despite Initial Spot ETF Outflows

XRP's Positive Market Sentiment

Recently, XRP has experienced a surge in positive market sentiment, driven by notable gains at the start of January. The altcoin has risen by 14.5% this month, despite Bitcoin's struggle at the $94.5k resistance level. According to Santiment, positive sentiment has grown even during recent price retracements as retail traders sought to "buy the dip" near the $2 psychological support level.

Spot ETF Outflows

The optimism contrasts with the $17.7 million outflows from the XRP Spot ETF, marking the first occurrence of such withdrawals.

Whale Accumulation Trends

Analysis of XRP's supply distribution reveals a trend of accumulation, particularly among whale investors. While retail holders' wallets have increased, they do not significantly impact market movements. In contrast, wallets holding over 100k XRP, particularly those in the 1 million to 100 million range, have shown increased activity since mid-November.

Notably, whale accumulation has occurred alongside minimal profit-taking. The Coin Days Destroyed (CDD) metric, which indicates the movement of long-term held XRP, showed no significant increase during the recent rally, suggesting a lack of sell-off activity.

Buyer-Dominant Market

The spot taker CVD metric indicates a market phase dominated by buyers. This aligns with whale supply distribution trends, pointing to a bullish market outlook. Long-term holders continue to maintain their positions, reinforcing the possibility of a continued rally.

XRP's trajectory suggests a potential climb past $2.4 in the upcoming weeks, contingent on Bitcoin surpassing its local resistance.

Final Thoughts

• XRP's recent price movements indicate a bullish trend shift rather than a temporary relief bounce.
• Evidence shows strong spot buying activity and increased whale accumulation since November.