XRP Wallets Holding Over 1 Million Coins Approach All-Time High Amidst Improved Sentiment

As the cryptocurrency market experiences a resurgence, XRP has garnered positive momentum, leading to a shift in sentiment among investors. This renewed optimism has prompted a notable uptick in demand for the altcoin, propelling a crucial group of holders towards nearing all-time high levels.

Near All-Time High for Wallets Holding 1 Million XRP

In the past year, XRP investors witnessed a period of significant selling pressure amidst the coin's struggle to gain traction in the market. Despite Ripple securing partial victories against the United States Securities and Exchange Commission (SEC), investor confidence waned, resulting in a notable exodus from the asset. Among the most impacted groups were addresses holding at least 1 million XRP tokens, encompassing significant players such as dolphins and whales.

The number of addresses holding a minimum of 1 million tokens reached its peak in June 2023. However, as prices declined, large holders began divesting, causing the count to dip, nearing 50 wallets below its previous peak of 2,014.

With the cryptocurrency market showing signs of entering another bullish cycle, expectations of XRP's price resurgence have surfaced, attracting the return of large investors. Data from Santiment reveals a steady increase in the number of wallets holding 1 million tokens or more throughout 2024. By April, this figure stands at 2,013, just one wallet shy of its previous all-time high and poised to potentially set a new record.

Why the Return of Large Investors?

The resurgence of large investors in XRP may be attributed to several factors, including bullish indicators finally emerging for the altcoin. Additionally, the market crash presented an opportune moment for investors to accumulate tokens at discounted prices, with XRP experiencing nearly 40% losses.

Renowned crypto analyst TonyTheBull highlighted the significance of this price correction, likening it to a final capitulation shakeout for the altcoin. Drawing parallels to a similar event in 2017, the analyst suggests that following such shakeouts, XRP could embark on a significant rally.

Anticipating a potential rally akin to the one witnessed in 2017, large investors have been acquiring substantial amounts of XRP. If historical patterns repeat, XRP's price could swiftly surpass $1, offering considerable returns for investors.