TL:DR;
- Investors with lots of conviction for certain assets tend to utilize deep corrections to stack more of those coins, and this seems to be the case in regards to the two of the largest cryptocurrencies – DOGE and XRP.
- On-chain data shows that large wallets poured millions into both during the recent market meltdown.
The market-wide crash that began in the middle of the business week caught many by surprise, given the billions of dollars worth of liquidations that were evident on a couple of occasions.
All crypto assets headed south vigorously, with BTC leading the way by plummeting from over $108,000 on Tuesday to $92,000 on Friday. As it typically happens, the altcoins were not sparred, just the opposite.
Dogecoin and Ripple were among the worst-performing assets at one point. The largest meme coin stood north of $0.41 before the correction began but dumped by over 35% to its low on Friday of $0.26.
XRP’s price plummet was almost identical as the asset came crashing down from $2.72 on Tuesday to $1.96 – a 28% drop. However, both have bounced off since those lows, with DOGE trading close to $0.34 (30% higher) and XRP at $2.3 (up by 17%).
On-chain data shared by the popular crypto analyst Ali Martinez shows that whales tracking both assets didn’t sit on the sideline but actually went on an accumulation spree. In Ripple’s case, they stacked up on 80 million tokens since the retracement began on December 17.
Whales bought 80 million $XRP since the price correction began on December 17! pic.twitter.com/nakUKEIzYC
— Ali (@ali_charts) December 20, 2024
Dogecoin whales also opened up their wallets by accumulating over 250 million DOGE. Such big purchases tend to positively impact the underlying assets’ prices due to the declining immediate sell pressure.
Whales bought over 250 million #Dogecoin $DOGE during the recent market dip! pic.twitter.com/qH7JSkkdhK
— Ali (@ali_charts) December 21, 2024
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