A recent surge in the number of whale transactions on the XRP Ledger suggests that these large token holders are getting ready to take profit after the price of the cryptocurrency jumped more than 40% year-to-date.
A chart showing XRP whale transactions has recently shown a large spike that “aligns with XRP’s sharp price rise to $3.2,” according to CryptoQuant analyst Woominkyu, who added that historically similar whale activity spikes have “been followed by notably market actions, often indicating profit-taking by whales.”
The recent spike, according to the analyst, suggests a “strong likelihood that whales may be positioning themselves for profit realization.”
As CryptoGlobe reported, XRP’s market capitalization briefly surpassed that of Wall Street giant Goldman Sachs, reaching $193.5 billion, earlier this week. This surge in XRP’s price performance is attributed to several factors.
A recent report from JPMorgan highlighted the potential for a spot exchange-traded fund (ETF) to attract billions of dollars in investor funds. Additionally, expectations of a more favorable regulatory environment under President-elect Donald Trump’s administration have contributed to the token’s value increase.
Anticipated policy changes, such as the establishment of a strategic Bitcoin reserve and the appointment of Paul Atkins as the head of the Securities and Exchange Commission (SEC), have significantly boosted investor confidence.
It’s worth noting that Atkins is considered a crypto-friendly figure to lead the regulatory agency, which has been involved in a legal battle with Ripple, a prominent player in the XRP ecosystem. This legal dispute centers around Ripple’s XRP sales.
Trump’s pro-crypto stance has led many to speculate that XRP could soon launch a spot exchange-traded fund (ETF) that provides exposure to the cryptocurrency. Several companies, including Bitwise, Canary Capital, WisdomTree, and 21Shares, have already filed for spot XRP ETFs. Ripple’s CEO, Brad Garlinghouse, has expressed the belief that such a fund is “inevitable.”
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