XRP News: Top 3 Reasons Pointing at XRP Accumulation

Key Insights

• The latest XRP news revealed about 190 million tokens were accumulated by whales over the past week.
• The XRP bullish bet is rapidly increasing again. Supply on Binance has been drying up from a shift where fewer coins are sitting on exchanges.
• XRP’s open interest just spiked more than 12% while the price holds steady.

The crypto markets continue to sink following the re-escalation of the Israel-Iran war. The rivalry is intensifying, causing financial markets, including commodities and stocks, to bear the brunt. However, Ripple (XRP), the fifth-largest crypto by market cap, rose about 1% at the time of writing as traders gradually returned to trading the altcoin.

The 104% spike in daily trading volume indicated that activity on the chain and on trading exchanges was rising. A couple of metrics revealed the top three reasons for considering XRP to be in a strong accumulation.

XRP News: Whales Buy 190M XRP In A Week

XRP news indicated that whales purchased over 190 million XRP crypto tokens in the past week, as analyzed by Ali Martinez on Santiment. The supply held by whales rose from around 11.02 billion XRP to about 11.21 billion at press time.

On average, the whales were buying well over 25 million XRP per day, indicating a strong accumulation trend. This was happening at a time other cryptos like Bitcoin (BTC) and Ethereum (ETH) were dropping in price. For instance, BTC lost $70K support while ETH lost $2K support and quickly reclaimed it.

XRP whale accumulation data | Source: Ali Martinez/X

In the meantime, XRP crypto remained within the $1.30 to $1.40 range, supported by smart money positioning. This move could signal a potential uptrend, with retail and exchange data further backing the buying action.

XRP Crypto Net Long and Supply on Exchanges

Looking at the perpetual futures data on Binance, the XRP/USDT pair was among the most traded, alongside the highest trading volume. Binance primarily accounted for most of the 104% surge in daily volume. The Open Interest (OI) was also in line, rising to around $270 million, while XRP crypto jumped from $1.32 to $1.35 on the hourly chart.

The Net Positions data extracted from Net Longs and shorts showed the buying was dominating. The indicator rose from negative 16 million to 2 million, which meant 18 million XRP contracts were bought. Similarly, the Cumulative Volume Delta (CVD) flipped green, indicating bullish momentum.

Following the heightened buying activity on Futures and Spot markets, the supply on exchanges dropped as traders withdrew tokens to non-custodial wallets.

According to CryptoQuant, the XRP Binance scarcity index rose from below 2.5 to around 0.5. It indicated that selling pressure was fading as holders scooped what was remaining. Even with minimal capital injection, such an increase in demand in favorable market conditions could lead to price swings.

XRP Binance scarcity index | Source: CryptoQuant

That was not the end, as more signals pointed to the ongoing accumulation trend in XRP.

Open Interest Rises As XRP Crypto Price Stabilizes

Further analysis of XRP news showed the ratio of Net Taker Volume to OI percentage change in a day had flipped green and spiked above 12. The ratio means that both buying volume and open interest were rising. The high ratio indicated that volume was rising faster than OI, further indicating a strong accumulation trend.

XRP Net Taker Volume/OI % Change | Source: CryptoQuant

Meanwhile, the price action of XRP crypto started bouncing off just above the $1.32 zone. Historical data showed that XRP price had rebounded from the zone about three times in March, and the current bounce could be the fourth.

In summary, the whales’ and retail traders’ buying activity, declining XRP balance on exchanges, and rising ratio of Net Taker/OI change pointed at an accumulation pattern.

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