Despite its steady bearish performance over the past few months, the sentiment towards XRP in certain areas appears to have turned bullish once again. One of the regions showing renewed interest and attention in the leading altcoin is South Korea, as its traders quietly build up more positions.
Signs Of XRP Accumulation Among Korean Traders
Trading activity of XRP is gaining momentum once again, especially from the South Korean region. There are emerging signs that Korean traders are stepping back into the market, re-accumulating the altcoin after a period of reduced exposure.
Regional exchange market data indicates a resurgence in buying demand, suggesting a potential change in attitude inside one of XRP’s most significant marketplaces. Arthur, a market expert and partner of the BingX exchange, disclosed the development using data from Bithump, one of South Korea’s largest exchanges.
As seen on the chart shared by the market expert, the leading South Korean cryptocurrency exchange has seen renewed activity on XRP pairs. In the past, periods of accumulation on the Korean markets have frequently been accompanied by greater momentum and liquidity. Meanwhile, this renewed buying activity could mark the beginning of an upward swing for XRP, driven by growing demand.
Since the re-accumulation signal, the price of the altcoin has increased by over 38%. Historically, when Korean liquidity steps in, Arthur stated that the price typically follows the trend. Thus, the expert believes that monitoring the flows could provide insights into the possible next direction of the token.
On the institutional levelaccumulation appears to be showing robust strength. Business owner and investor Minus Wells shared that Evernorth, regarded as the MicroStrategy of XRP, has quietly scooped up nearly 0.5% of all the altcoin’s supply in the market.
Following the recent acquisition, the company now has more than 473 million XRP locked in its treasury vault. This stash represents almost half a percent of the entire supply sitting in one corporate vault. According to the expert, the firm is just getting started. “While everyone else is panicking over dips, this Ripple-backed beast is building the biggest public XRP hoard ever,” he added.
Positioned In A Sweet Spot
After persistent downside pressure, the altcoin is now positioned in a sweet spot as all of the liquidity below has been cleared, while the deep liquidity above is stacked all the way up to $4+. Bird highlighted that this is the point where many shorts, leverage positions, and stop levels are sitting.
Despite the price trajectory, the markets naturally move towards liquidity because that is where the orders are located. When price reclaims these areas, shorts are forced to close, and a closed short hints at buying re-accumulation at higher levels. As a result, upside moves can be extremely swift.
Furthermore, liquidations trigger buying pressure, which pushes prices higher and closes more shorts, leading to a resurgence of momentum. Following this, the market buysand retail rushes in, driving the price wild.
Featured image from Shutterstock, chart from Tradingview.com
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