XRP Price Dips 20%, but Whale Accumulation Signals Confidence

XRP has plunged 20% over the past two months, now trading at $2.45. However, large investors continue to accumulate the token, suggesting confidence in its long-term potential.

Data from Santiment shows that wallets holding at least one million XRP have increased their holdings by 6.5% to 46.4 billion XRP ($114 billion) during this period. This whale activity indicates strong institutional interest, even as the price declines. Meanwhile, network engagement has surged, with six times more unique wallets interacting in March than in previous months.

Despite XRP's downturn, sustained whale accumulation could signal a potential rebound. Historically, large-scale buying during price dips has preceded strong rallies in the crypto market. Investors are closely watching whether this pattern will hold for XRP.

Adding to the bullish outlook, Ripple CEO Brad Garlinghouse stated on Wednesday that the U.S. strategic digital asset reserve is likely to include XRP. This statement has fueled speculation about the token's long-term role in the global financial system.

As XRP whales continue accumulating and network activity rises, the market awaits signs of a price recovery. Will this growing investor confidence translate into a bullish breakout? Time will tell.