On-chain data shows XRP active accounts have spiked to a 7-month peak amid a massive whale accumulation trend over the last two weeks.
These bullish metrics have prevailed despite the ongoing market uncertainty that has plagued the broader market. Amid this uncertainty, XRP previously tumbled from the $0.53 high on Oct. 29 to retest the psychological support at $0.50. A mild recovery has seen it rebound above $0.51 at press time.
Despite this push, XRP continues to underperform in longer timeframes. Notably, the altcoin is down 16% this year, while assets like Bitcoin (BTC) and Solana (SOL) are witnessing impressive gains. However, on-chain data shows this bearish turn of events has not dampened investor optimism.
Active XRP Accounts Hit 7-Month Peak
Interestingly, activity within the XRP ecosystem has seen a notable rise in recent times. According to data from on-chain resource CryptoQuant, active accounts on the XRP Ledger (XRPL) tumbled to lows below 10,000 at the start of October but have since continued to increase.
For instance, these accounts surged above 14,500 on Oct. 12 before retracing sharply in the following day. Since then, they have been on an upsurge, peaking at 24,411, a high the network last witnessed seven months ago.
XRP Active Addresses | CryptoQuant
The last time the XRPL saw this level of activity was on March 11, when about 25,000 accounts interacted with the blockchain. On this day, XRP saw a massive price spike, rising from $0.6084 to its yearly peak of $0.7449 before retracing.
A spike in active accounts can be bullish for XRP price action. However, this depends on the behavior of network participants, as the altcoin could benefit from a surge in addresses purchasing more tokens but feel a negative impact from a rise in addresses involved in selloffs.
For instance, during the March 11 price increase, receiving accounts on the XRPL spiked to a high of 43,343. This figure collapsed in the days that followed but has continued to fluctuate between highs and lows since then.
Whales Amass 390M XRP
Interestingly, receiving accounts are now seeing another spike, recently peaking at 48,628, as active accounts recover above 23,000. This represents a strong signal of an impending price run similar to the trend observed earlier this year.
XRP Receiving Addresses | CryptoQuant
In addition, XRP is also seeing a rapid spike in whale accumulation. According to data from market intelligence resource Santiment, addresses holding between 1 million and 1 billion XRP have increased their collective balance from 19.6 billion tokens on Oct. 21 to the current figure of 19.9 billion tokens.
XRP Whale Accumulation | Santiment
This massive increase confirms that these addresses have procured 390 million XRP tokens worth $198.9 million over the past two weeks. As XRP looks to recover from the latest slump to $0.50, the increased activity and accumulation trend could provide strength to the bulls.
Notably, XRP currently changes hands at $0.5170, up 2.79% this morning. The U.S. presidential election is pumping fresh capital to the crypto market as investors await the winner. A Donald Trump win could bolster the ongoing recovery rally.
Read the full article here
