XRP whales jump to buy the dip, scoop up nearly $170 million in tokens in a week
- XRP network’s large wallet investors bought the dip, accumulating 360 million tokens between June 22 and 28.
- XRP price declined 6% from the June 22 open to Thursday, offering a buy-the-dip opportunity to traders.
- Bullish on-chain activity coupled with whale accumulation is likely to act as a catalyst for XRP price.
Ripple network’s whales capitalized on the recent opportunity to “buy the dip” and scooped up as many as 360 million XRP tokens over one week. Throughout the same period, XRP price declined consistently, from $0.5008 to $0.4724.
Large wallet investors spent $170 million accumulating XRP tokens. This fuels a bullish thesis for the altcoin’s price recovery.
Also read: XRP on-chain activity signals incoming price rally as holders await SEC vs. Ripple verdict
Whales accumulate XRP tokens at a discount
Large wallet investors engaged in buying the dip and scooped up $170 million worth of XRP tokens. Typically, whale accumulation is considered a bullish sign for an asset.
XRP accumulation by whales
Whale accumulation of XRP removes the tokens from circulation and eases selling pressure on the price. These two factors support a recovery in the altcoin’s price in the short term.
As seen in the chart above, whales holding between 10 million and 100 million XRP tokens increased their XRP balances during the recent dip in the altcoin’s price.
These on-chain indicators support XRP price recovery thesis
Active addresses and trade volume of XRP have sustained above average over the past two weeks, as seen in the chart below. Based on data from crypto intelligence tracker Santiment, XRP’s on-chain activity is bullish, and a recovery in the asset’s price is likely in the short term.
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XRP price vs. trade volume vs. active addresses
A peak in activity on the XRP network has triggered a rally in the altcoin in previous instances as well. If history repeats, whale accumulation and the bullish on-chain indicators are likely to drive XRP price higher.
SEC vs Ripple lawsuit FAQs
Why are the US Securities and Exchange Commission and Ripple litigating?
The United States Securities and Exchange Commission (SEC) brought charges against Ripple and its executives alleging that the cross-border payment settlement firm raised more than $1.3 billion through an unregistered asset offering of the XRP token. Ripple argues that XRP should not be treated as a security or an investment contract, just like the SEC looks at Bitcoin or Ethereum, citing views from former SEC Director of Corporation Finance William Hinman.
When did the SEC vs. Ripple court case start?
The SEC charges were made public in December 2020. The long-running litigation, presided by Judge Analisa Torres, seems to be close to its end as both parties fail to reach an agreement.
What are the effects on XRP price?
Ripple is the largest holder of the altcoin XRP. The SEC’s charges against Ripple resulted in a mass delisting of XRP across crypto exchange platforms and a sharp decline in the token’s value, which used to be the third crypto asset by market capitalization after Bitcoin and Ethereum. A positive outcome for Ripple in its case against the SEC would benefit XRP’s price, while a SEC win is likely to weigh further on the asset, experts say.
Which implications could the ruling have on the overall crypto industry?
The final verdict in the SEC vs. Ripple lawsuit is the most highly anticipated in the crypto ecosystem. The lawsuit is expected to set precedent for other open cases that affect dozens of digital assets. A ruling in favor of the SEC would most likely bring further regulation to the sector as it would classify most tokens as securities. On the contrary, Ripple’s win would be interpreted as a validation of the crypto markets and could boost investors' confidence if current legal uncertainties surrounding digital assets in the US are solved.
What about secondary sales of XRP among traders?
The ruling may also include views over XRP secondary sales, which directly affects investors who trade XRP on cryptocurrency exchange platforms. Pro-Ripple attorney John Deaton, who filed an amicus brief in the SEC vs. Ripple case, suggests this matter is likely to be addressed. A ruling stating that secondary sales don't qualify as securities, contrary to what the SEC claims, is likely to be beneficial for XRP.
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.
