In recent weeks, Ripple (XRP) surprised the market with a rise to over $1.25, reaching a three-year peak. This surge was largely driven by actions of major investors, despite active sales from retail investors.
XRP Market Dynamics
Ripple emerged as a market leader in recent weeks amid the overall market activity following Trump's victory in the elections. The price of the token skyrocketed from under $0.6 to over $1.25, ending a long period of stagnation. This increase coincided with large investors known as 'whales' and 'sharks' actively purchasing tokens, while retail investors seemed to take advantage of their previous investments.
Role of Large Holders
According to Santiment, whales increased their XRP holdings in just one week, reaching a 6.5-year high. Over 450 million tokens were accumulated, worth approximately $530 million at the time of purchase. These actions triggered positive growth in the cryptocurrency's market capitalization. 'Historically, any cryptocurrency tends to show market cap growth when key stakeholders are increasing their holdings, while retail FUD fuels this growth more,' noted Santiment data.
Forecasts and Expectations
The surge of XRP above $1 sparked active discussions within the crypto community. Forecasts range from moderate to highly ambitious. Some analysts suggest that the price could reach $1.5 next, then peak at $1.96 or even $3.8. However, there are bolder predictions arguing the token could rise to $7, driving its market cap to over $400 billion, making it the second-largest cryptocurrency.
Recent events surrounding XRP have shown how significant a role large investors play in shaping market dynamics. While short-term forecasts may vary, it is evident that current market movements are attracting the attention of many participants, fueling interest in future developments.
