XRP may test $0.4 resistance level, according to Santiment data

Cryptocurrency prices have been on a rollercoaster ride over the past few years. From the all-time highs of 2017, when Bitcoin reached almost $20,000, to the subsequent crash in 2018, the crypto market has been highly volatile and unpredictable. However, despite this volatility, some investors have remained optimistic and continue to hold on to their digital assets in the hopes of a future price rally.

One such group of investors are XRP whales, who hold large amounts of the digital asset. According to data from blockchain analytics firm Santiment, XRP whales have been buying up tokens during the recent price decline in the crypto market. In the last five weeks, the holdings of XRP whales with 100,000 to 10 million coins on their balances have increased by over 6%. These whales had held around 11% of the total XRP supply in mid-November, but since then they have increased their holdings by millions.

As of now, the total percentage of the XRP supply held by these large whales is around 18%. Wallets holding more than 10 million coins now hold a majority of the total supply at 71.67%, up from the 70.8% recorded in mid-November. In total, addresses holding 100,000 coins and above now command around 90% of the total XRP supply.

This accumulation trend among XRP whales could signal a possible decoupling of the digital asset's price from the broader crypto market, leading to a rally. If the available supply continues to go to long-term holders, this demand could result in a supply squeeze. The Santiment data also shows accumulation among smaller addresses, indicating that XRP may test the $0.4 resistance level before the week is over.

XRP is currently trading at $0.38 with a market cap of approximately $19.2 billion. The low volatility associated with weekend markets could hinder XRP's rally, but it could also help the cryptocurrency hold any gains it registers between Thursday and Friday.

Overall, the accumulation of XRP by whales could be a bullish sign for the digital asset. If these large holders continue to accumulate XRP and the demand for the token increases, it could lead to a price rally. However, the low volatility of the weekend markets could pose a challenge for XRP, and it remains to be seen if the digital asset will be able to break through the $0.4 resistance level.