Will XRP price rally grind to a halt after 55% gains in ten days?
- XRP trade volume and activity on the altcoin’s blockchain has climbed alongside the asset’s 55% rally since March 21.
- Large wallet investors in XRP network are scooping up the altcoin, accumulating it ahead of the SEC v. Ripple outcome.
- Experts believe XRP price is ready to break into a massive rally at the current levels of accumulation by whales.
XRP, one of the largest altcoins in the crypto ecosystem, witnessed a massive price rally over the past ten days. On Bybit exchange, XRP price rallied 55% in a ten-day period, yielding massive gains for holders. While XRP holders anticipate the outcome of the SEC v. Ripple case and whales accumulate the altcoin, buying the dips consistently, the altcoin crossed key resistance and hit a high of $0.57.
Also read: Ethereum price targets rally to $2,000 ahead of ETH token unlock
XRP trade volume and activity climb, here’s what to expect
Based on data from crypto intelligence tracker Santiment, there is a spike in the daily trade volume and activity of users on the XRP network. There is a notable increase in whale activity, and accumulation of the altcoin by large wallet investors.
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XRP active addresses, volume and network growth
The chart above shows a massive spike in XRP volume since March 26, and an increase in the network growth metric. Typically, this is considered a bullish sign for the altcoin.
Alongside increasing trade volume, analysts have noted a consistent increase in XRP token accumulation by whales.
Whales scoop up XRP in large volumes
Large wallet investors on the XRP network holding between 1,000 to 10,000, 10,000 to 100,000 and higher volumes of this token have consistently scooped up more XRP since March 20.
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XRP accumulation by investors
Whale accumulation supports the bullish thesis for the altcoin. Rising interest from investors and scooping up of higher volumes of XRP token are the two prominent drivers of the altcoin’s price rally.
On-chain metrics point at a sustained rally in the altcoin, however XRP’s correlation with large market capitalization cryptocurrencies like Bitcoin and Ethereum could influence its price in the short-term.
XRP holders are anticipating the cross-border payment settlement firm’s win in the lawsuit brought on by the US financial regulator, the Securities and Exchange Commission. Comments from XRP proponent attorney John Deaton have fueled a bullish sentiment among holders.
#XRP w/o a doubt is the answer to the question 1st, slammed as a Bankers Coin - the opposite of what #Bitcoin stood for (originally). 2nd, called a shit coin by @VitalikButerin. 3rd, labeled a security by the SEC and thus, declared dead. In the end, #XRP is the comeback coin. https://t.co/8fA2nC1CCt
— John E Deaton (@JohnEDeaton1) March 28, 2023
Interestingly, while there is FUD in the crypto ecosystem regarding the status of cryptocurrencies whether they are securities or not, Ripple CTO David Schwartz commented on XRP’s status.
I think the server code becoming open source was the point where people no longer had to rely on Ripple to maintain the ledger.
— David "JoelKatz" Schwartz (@JoelKatz) March 28, 2023
Schwartz pointed at the exact moment when XRP ceased to be a security and clarified that it happened when Ripple relinquished its control over the XRP Ledger and allowed others to maintain it as well.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
