Large investors, known as “whales,” had already taken positions before the buzz around an XRP exchange-traded fund (ETF) began. They likely anticipated or used rumors to accumulate XRP, driving prices up even before the news became mainstream. However, retail traders flooded in later, driven by FOMO and emotion, causing market behavior to become unpredictable.
The earlier strategic whale-led accumulation turned into sharp price swings due to speculation and rapid changes from less experienced traders. This shift creates a less stable price environment for XRP. Retail participants should be cautious when entering late, as history shows that once retail enters en masse, profit-taking often follows, leading to increased volatility.
Understanding the flow dynamic of whales acting first and retail following later is crucial for navigating crypto markets like XRP with more clarity and reduced risk.
Source: https://www.bitget.com/news/detail/12560605062428