XRP has resumed its uptrend and is showing a significant price resurgence. However, recent on-chain data shared by popular crypto analyst Ali Martinez shows that XRP whales have released large amounts of tokens over the past two days.
Notably, the data shows that whales have sold around 150 million XRP (worth over $300 million) in the past 48 hours, suggesting investor interest is waning.
The data tracked the wallets of large XRP holders and showed that among wallets holding 1 million to 10 million XRP, their holdings decreased significantly as they exited the market.
These large-scale selling activities by whales have increased curiosity about the motives behind the repositioning. This move does not seem to have had any negative impact, but XRP only showed a rapid price recovery after the sell-off.
XRP shows dramatic rise of 9%
Despite aggressive selling pressure from these wallets, the price of XRP unexpectedly spiked last week.
XRP has seen a significant daily increase of approximately 8.72%, and it appears that new demand has absorbed the supply from selling whales. At the time of writing, XRP is trading at $2.15, according to data from CoinMarketCap.
Additionally, rapid XRP appreciation could be caused by broader market conditions that temporarily overshadow whale activity.
XRP ETF drives demand
Despite the significant sell-off of XRP by large holders, the token is still regaining bullish momentum thanks to thick demand from institutional investors sparked by the recently launched XRP ETF.
Since the launch of the first spot XRP ETF in November, there has been renewed interest in the ecosystem and demand from institutional investors continues to increase.
The strong daily performance recorded by ETFs, coupled with major developments by Ripple, continues to drive XRP adoption.
Although the token has yet to recover from the series of corrections it continues to face, analysts are optimistic that the leading altcoin is on track to regain the crucial $3 level.
