Large XRP holders are doubling down by adding more XRP coins to their bags. This comes even as the XRP price remains stuck in the crypto abyss.
In recent months, XRP has fared terribly when compared to bitcoin, ether and other major cap cryptos. As bitcoin entered a tight trading range, XRP has dropped lower and lower. Case in point, the digital asset has corrected downwards by around 20% since May’s high of roughly $0.23 to trade at $0.183235 at press time.
Despite the dull performance, the large XRP investors have stuck to their guns with determined accumulation.
Large XRP Investors Are On A Buying Spree
According to data provided by ledger.exposed, a website created by XRPL’s lead developer Wietse Wind, large XRP investors have been heavily accumulating the altcoin. This information was publicized by the host of the BetterPRNow podcast, Mark Philips on Wednesday.
This behavior by large investors suggests that a huge upward price movement could be brewing and these investors are preparing to take advantage of such a move by increasing their positions.
But XRP enthusiasts should not get too excited just yet as the current atmosphere in the crypto markets is likely to dampen the crypto’s bullish prospects.
XRP’s Fundamentals Not Matching The Price Action
In January of this year, Galaxy Digital’s Mike Novogratz posited that XRP would “underperform immensely” again in 2020. It is safe to say that he was right as things currently stand. This year has turned out to be XRP’s second consecutive year of underperformance. While bitcoin has gained approximately 30 percent since the beginning of the year, XRP is down by 2 percent over the same timeframe.
Most attribute this poor performance mostly to the lack of regulatory clarity around the asset. The possibility of being classified as a security has loomed over the asset for the longest time. Just last week, ex-CFTC Chairman Chris Giancarlo stated that XRP failed the Howey test and should therefore not be considered as a security. However, the multiple class-action lawsuits filed against Ripple argue that XRP is unequivocally a security.
It should be noted that Ripple has struck deals with high-profile firms like MoneyGram (which uses ODL for its cross-border remittances) and Bank of America (according to reports, BoA has tested out Ripple’s technology). In fact, the San Francisco-based firm is planning to open up more payment corridors this year, including one in Brazil.
Interestingly, even with the booming cross-border payments service, the price of XRP is still playing catch-up. But for some analysts, this implies that it is presently severely undervalued.
All in all, XRP appears to have attracted a group of devoted large investors that have continued to accumulate despite the abysmal performance.