Whales React to Ripple’s $285 Million Buy-Back Scheme: Is an XRP Price Surge on the Horizon?

Ripple Labs, the company behind the sixth largest cryptocurrency, XRP, recently announced plans to buy back $285 million of its shares at a valuation of $11 billion. This significant development has elicited a bullish response from XRP whale investors, whose transactions on the XRP ledger network have surged substantially in the aftermath. Analysts believe the positive reaction signals that XRP’s price could stage an emphatic rally shortly.

Whale Transactions on XRP Network Hit 2024’s Second Highest Level

On-chain data shows that following Ripple Labs unveiling its buy-back plans on January 10, transactions exceeding $100,000 on the XRP ledger – a key metric for tracking whale activity- have seen a marked rise. According to analytics firm Santiment, the number of whale transactions on January 11 reached 1,235, nearly tripling from 427 the day before the buy-back was announced. Significantly, this figure represents the second-highest daily whale transaction count for 2024 so far, only behind the 1,462 recorded on January 3.

By monitoring transactions of $100,000 and above, the whale transaction metric effectively gauges the prevailing sentiment among large institutional and retail traders on a given blockchain. A sharp spike in this activity is usually perceived as an indicator of rising optimism among dominant market players. In the recent case, the massive 190% surge affirms that XRP whales have responded positively to Ripple’s buy-back news and are accumulating more of the coin. Their sustained buying pressure could draw in other traders and propel XRP’s price higher in the weeks ahead.

Bulls Set Sights on $0.70 Milestone on Anticipation of Further Gains

Encouraged by whales’ bullish behaviour, market participants now believe XRP has the potential for a meaningful upside from current levels. After breaking above the $0.62 resistance area on January 11, traders will be next eyeing a test of the key $0.70 level. Technical studies also validate this optimistic short-term outlook. At the time of writing on January 12, XRP is trading around $0.59, comfortably beneath the Parabolic SAR indicator’s dots pointing to $0.63. A decisive break past this hurdle could open the gates for a surge towards the coveted $0.70 price point.

However, bears may attempt to stall the rally by forcing a downward swing below the critical $0.50 support zone. But bulls are expected to defend the important psychological footing around $0.55 strongly. This territory could catalyze a rebound in XRP’s price as long as it holds. Overall, whales’ enthusiastic response to Ripple’s bold buy-back decision has injected fresh optimism into the market. Their sustained buying activity signals that XRP may have more upside soon.Whales React to Ripple’s $285 Million Buy-Back Scheme: Is an XRP Price Surge on the Horizon?