The cryptocurrency XRP has witnessed a notable increase in its value today, with a rise of approximately 11.50% in the last 24 hours, bringing its price to $0.68. At its peak during the day, XRP traded as high as $0.74, marking its highest price point since November 2023.
XRP’s price surge today follows significant movements of capital from cryptocurrency exchanges. A notable event on March 8 saw an anonymous entity withdrawing 300 million XRP, valued over $187.13 million, from Binance, as reported by Whale Alert.
Subsequent transactions of similar magnitude indicate a preference among XRP’s wealthiest holders to retain their tokens off exchanges, potentially in anticipation of further price appreciation.
Data from Messari reinforces this trend, showing an increase in the number of addresses holding over 1 million XRP during this price rally. This accumulation by large investors (whales) is a positive indicator for XRP’s market sentiment and suggests potential for continued upward movement.
Capital Rotation from Bitcoin to XRP
Additionally, XRP’s price gains coincide with a notable recovery against Bitcoin (BTC). After hitting its lowest level since March 2021 at 0.00000859 BTC, the XRP/BTC pair rebounded by over 12%, indicating a shift by some investors from Bitcoin to altcoins like XRP in search of higher short-term returns.
This capital rotation is also a strategy for diversifying risk away from assets perceived as overbought, such as Bitcoin, which, despite its significant gains in 2024, shows signs of being overbought on daily timeframes. In contrast, XRP’s daily Relative Strength Index (RSI) remains in a neutral range, suggesting that compared to Bitcoin’s rally, XRP may have more room to grow.
