XRP price likely to rally as investors grow their holdings, Ripple CTO challenges US SEC about Ethereum
- Ripple CTO addressed the SEC following its comment about the false report on Spot Bitcoin ETF approval.
- David Schwartz sought clarity about whether selling Ethereum on exchanges falls under securities trading.
- The status of ETH remains uncertain, with the commission’s unclear stance on several other tokens, including ADA, SOL, and MATIC.
- Meanwhile, buying pressure around the remittance token has intensified after a whale moved 30.8 million XRP tokens.
XRP price could record bullish activity soon, coming on the back of positive activities among whales. Meanwhile, a Ripple executive has taken jabs at the US Securities and Exchange Commission (SEC) after the agency came out to quell false reports of an approved Spot Bitcoin exchange-traded fund.
Ripple CTO on US SEC on Ethereum’s ambiguity
Ripple CTO David Schwartz revisited the “trading unregistered securities” theme with the SEC, asking whether the commission thought people selling Ether on exchanges were selling securities.
Awesome. Does the SEC think people selling ETH on exchanges are selling securities? I'd like to hear from the best source. https://t.co/Mvgaa9DgUH
— David "JoelKatz" Schwartz (@JoelKatz) October 17, 2023
Despite the authenticity of the question, it delivered a pinch of sarcasm after the commission’s previous comment that “The best source of information about the SEC is the SEC.” The comment came as the financial regulator clarified false rumors about a spot BTC ETF approval.
It is worth mentioning that XRP remains among the few tokens with legal acknowledgment as non-securities. This status was achieved after the July 13 ruling by Judge Analisa Torres. On the other hand, Ethereum (ETH) and other altcoins like Solana (SOL), Cardano (ADA), and Polygon (MATIC) do not enjoy the same privilege, after the SEC branded the last three securities. As such, there is a cloud of uncertainty around them.
More intriguing, discussions about the classification of ETH as a non-security have sparked controversy, with former SEC executive William Hinman commenting on the status of Ether. Reportedly, Ethereum co-founder Vitalik Buterin could have had a significant influence on the remarks of Hinman.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
XRP whales moving
Meanwhile, holders with more than 1000 XRP tokens in their accounts, otherwise termed whales, have resumed activity after a prolonged period of dormancy. The latest insight from Whale Alert, a blockchain tracker and analytics system that reports large and interesting transactions as they happen, shows that a whale moved 30.8 million XRP tokens to a new wallet, worth approximately $15.2 million.
409,776,402 #XRP (201,627,816 USD) transferred from #Bitvavo to unknown new wallethttps://t.co/j0ho6BYxce
— Whale Alert (@whale_alert) October 17, 2023
This was barely 24 hours after another whale moved almost 410 XRP tokens worth approximately $202 million from the Bitvavo cryptocurrency exchange to a new wallet.
409,776,402 #XRP (201,627,816 USD) transferred from #Bitvavo to unknown new wallethttps://t.co/j0ho6BYxce
— Whale Alert (@whale_alert) October 17, 2023
On the same day, another whale moved 30 million XRP tokens worth around $15 million from an unknown wallet to the Bitstamp exchange. And yet another on the previous day, moving 75 million XRP tokens worth approximately $37 million from Ripple to an unknown wallet.
75,000,000 #XRP (36,921,543 USD) transferred from #Ripple to unknown wallethttps://t.co/VRawsYdrhI
— Whale Alert (@whale_alert) October 16, 2023
The transactions, moving the tokens from exchanges to wallets, points to investors increasing their holdings, with the buying pressure likely to catalyze a surge in Ripple price.
Ripple price outlook with whales accumulate XRP
Ripple price has reacted to the whale accumulation, recording steadily higher highs and higher lows between October 13 and October 18 before profit booking began. The Awesome Oscillator is green and edging to the positive zone, showing bulls are establishing dominance and Ripple price could increase.
A sustained uptrend could see Ripple price reclaim its early October highs at around $0.5392. A break and close above this level would mark the completion of a recovery rally, potentially providing leeway for an uptrend. A decisive candlestick close above $0.5705 would confirm the move north.
XRP/USDT 1-day chart
On the flipside, the Relative Strength Index (RSI) below 50 shows momentum remains weak. This threatens the upside potential, with bears likely to take over. This could send Ripple price below the $0.4735 support level. In the dire case, the clump could extend below the floor price of $0.4452, 10% below current levels.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
