As the price of XRP has dipped over the last few days, bearish sentiment once again took hold of the community. However, not everyone seems to have succumbed to this negative sentiment as one whale has chosen this as a perfect time to buy a large number of tokens.
Whale Goes On $201 Million Shopping Spree
At a time when morale is falling due to the US Securities and Exchange Commission (SEC) debunking rumors that it had approved the BlackRock iShares Spot Bitcoin ETF, one XRP whale has made an enormous token purchase.
The transaction which was reported by whale tracker Whale Alert showed that this single whale had bought more than 409 million XRP tokens. The whale had withdrawn the tokens from the Bitvavo Exchange to a private whale which is assumed to be for safekeeping. At the time of the transaction, the tokens were worth almost $202 million, showing a very high level of conviction in this whale.
— Whale Alert (@whale_alert) October 17, 2023
This whale transaction is a welcome change from last week when XRP whales seemed intent on dumping their holdings as fast as possible. As Bitcoinist reported, whales had moved more than $20 million worth of tokens to centralized exchanges.
The purpose of these transactions was suspected to be for selling and this was selected by the token’s price falling not too long after, clearing the support at $0.48. However, there seems to be a turn in the tide and as accumulation ramps up, the digital asset is beginning to show strength on the charts.
Token begins to show strength as sentiment improves | Source: XRPUSD on Tradingview.com
XRP Investor Sentiment Moves Back Into Neutral
As the XRP price has begun to see recovery, there is a slow but steady change in the attitude of investors toward the digital asset. As data from the CFGI website shows, the XRP Fear & Greed Index has moved back into the neural territory after falling into fear previously.
Fear & Greed Index points to a recovery | Source: CFGI
Interestingly, this recovery in sentiment mirrors that of the broader crypto market. According to the Crypto Fear & Greed Index, sentiment is now sitting at a perfect neutral, giving both bears and bulls a perfect environment to pull crypto prices in their favor.
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This means that there is just as much chance for a recovery in the XRP price as there is for a decline. In the end, the price will swing toward the camp which creates more pressure. So if buying pressure continues to mount, then a price recovery above $0.5 could be imminent. However, if sell pressure becomes higher, then it is possible to see the digital asset tumble back down toward $0.46.