Key Insights:
Whales have accumulated at least 120 million XRP in the last 48 hours.
Donald Trump's executive order to create a "National Digital Assets Stockpile" seems to have cheered XRP investors and whales.
Other reasons pushing XRP ahead is its dominance in cross border payments, high demand for XRPL and the launch of RLUSD.
Lately, XRP was also in the middle of a controversy after its co-founder and Ripple CEO opined for the inclusion of other altcoins in the US Crypto Reserve.
Whales have bought nearly 120 million XRP, which amounts to roughly $400 million in the last couple of days. The dip between 26 Jan and today took XRP momentarily below $3 till $2.75. However, XRP recovered quickly and, at press time, stands a little above its resistance at $3.14.
XRP has been a top choice for investors after its phenomenal growth from $0.5 to $3 in little less than three months. This massive rally was possible after the win of Donald Trump in the 2024 US Elections.
Major factors that drove XRP upwards were expectations for positive regulations, a possible end to the SEC case, and the massive partnerships XRP has formed with various banks, payment settlement portals and financial giants.
Further, with the declaration of the US National Digital Assets Stockpile, the perceived future value of XRP shot even higher than ever before.
ETFs also constitute a major factor in XRP's recent demand. Major altcoins like Solana, Dogecoin, Chainlink, XRP, Cardano, and Polkadot are awaiting their ETF approval, with XRP and Solaan being the first ones who could receive the good news.
Another major factor that led to the surge in XRP's demand is the role of XRP futures that are about to be listed on the CME website. The Chicago Mercantile Exchange (CME) is one of the largest derivatives trading platforms in the USA, with access to trillions of dollars in liquidity.
XRP and Solana ETFs on CME Staging Subdomain
Finally, XRP's central role in the XRPL blockchain also plays a key role in attracting investors to it. Ripple uses XRPL for its ODL services, asset tokenization, issuing RLUSD, and cross-border payments.
Ripple CEO Brad Garlinghouse, one of the first pioneers in cryptocurrency, has opposed the creation of just a Bitcoin Reserve. In his opinion, other cryptocurrencies like XRP should also be included in the reserve.
This statement has stirred controversy in the markets because Ripple has been selling XRP to fund operations. People against the diversification of the US National Digital Assets Stockpile
This statement has stirred market controversy because Ripple has been selling XRP to fund operations. People against the diversification of the US National Digital Assets Stockpile. All of these have led to a bitter fight between the supporters of these two cryptocurrencies.
As whales have increased their accumulation of major altcoins like XRP, Dogecoin, and Solana, it leaves us wondering whether the Altcoin Season will arrive soon.
At press time, the Altcoin Season Index, which indicates the severity of altcoin gains in the crypto markets, has been at a neutral level of 41 to 45 for almost all of January 2025.
Altcoin Season Index
This situation is far below the expectation of a strong altcoin season after US President Donald Trump assumed office. Crypto markets are disappointed at their low bullishness because, despite the creation of a Crypto Working Group for crypto regulations in the US and the end of all Biden-era executive orders, they are still weakly bullish.
At Voice of Crypto, we assume that the proliferation of memecoins and the creation of millions of new projects in this sector has diverted investor attention from main projects that carry real utility. The true growth in altcoins, hence, would only be possible after the memecoin mania ends in the markets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.