According to market statistics from Santiment, crypto whales are scooping up a huge part of XRP coins, with accumulations totaling hundreds of millions of dollars in the previous seven days. The erratic swing of the crypto asset’s trading volume portends significant price consequences for Ripple in the coming weeks. There are currently around 350 whale addresses, each of which holds more over 10 million XRP.
The increased buying frenzy also indicates that most Ripple investors are confident that Ripple will win a landmark victory in the ongoing legal battle with the SEC over allegations that they raised over $1.3 billion through an unregistered securities offering. In a recent interview, attorney Joseph Hall, a former SEC officer, stated that the SEC should not have filed the complaint in the first place.
He implied that Ripple would prevail, given the Commission’s lack of basis for bringing the case. He even suggested that the commission’s regulatory activities be halted. The current scenario seen in November-December 2020 shows the most likely direction of future price movements.
Following the rapid acquisition of about 1.3 billion XRP at that time, the XRP price dramatically increased in proportion to BTC over the next three months as the crypto asset showed to be a more stable cryptocurrency throughout the overall crypto market decline. Analysts at Santiment believe that a similar rationale may be applied to the projected price dynamics in the next weeks.
The first conceivable price drift is the anticipated rapid spike in the XRP price if the SEC lawsuit is won by Ripple. Pundits believe that Ripple is unaffected by the current institutional and regulatory turmoil. As most governments focus their policy on BTC and ETH, XRP may benefit from a more stable environment for long-term growth.
Furthermore, most long-term XRP investors tend to be future-oriented and are unwilling to open short positions even in the face of slight price increases. Because the quantity of XRP short-term holders is substantially lower than that of BTC, XRP prices tend to be more stable in such settings.
The second possible price consequence is that the crypto market is about to enter a new phase of decline. As whales move their preferences toward Ripple’s XRP rather than Bitcoin, Ethereum, or Solana, they anticipate a drop in demand for the big crypto currencies.
The presence of a time lag between the changing whales’ behavior and future price movements is the main practical benefit of this approach. As a result, individual investors have taken precautionary steps, such as increasing their holdings of XRP and stablecoins. Close monitoring of XRP accumulation can also be used to predict the general stability of the crypto market and the likelihood of a future unfavorable trend reversal.
© 2015-2023 Coinposters. All rights reserved!