Home XRP Are XRP Whales Following Bitcoin’s Accumulation Plan as $170 million Bought in the Dip

Are XRP Whales Following Bitcoin’s Accumulation Plan as $170 million Bought in the Dip

Teuta Franjkovic
Published June 30, 2023 2:01 PM
Key Takeaways
  • Large wallet holders on the XRP network bought the dip, acquiring 360 million tokens between June 22 and June 28
  • From the outset on June 22 to Thursday, the price of XRP dropped by 6%, providing traders with a buy-the-dip chance
  • Whale accumulation along with bullish on-chain activities will probably function as a stimulus for the price of XRP

For astute investors, in particular those who have a sizeable quantity of XRP, the recent volatility in cryptocurrency prices has created appealing opportunities to purchase additional coins.

Whales Purchase 360M XRP In Advance Of a Significant Price Increase

Ali Martinez, a well-known cryptocurrency expert, brought attention to the strange XRP whale buying activity earlier today during the recent market downturn. In a tweet, Martinez pointed out that whales bought a stunning 360 million XRP tokens, or roughly $170 million, despite the cryptocurrency’s price falling by 12% between June 22 and June 28.

Notably, in the crypto world, the so-called “whales” are sometimes seen as trendsetters, and their activities can affect market dynamics. These whales are probably indicating their expectation of a price increase by purchasing such a significant volume of XRP during a decline.

This action might draw further investors and support the favorable perception of Ripple and XRP.

The massive purchase was made only a few days after the commentator noted the link between XRP price increases in the past and an increase in the number of active XRP addresses.

Credit: Santiment

These achievements demonstrate that investors have faith in Ripple’s mission and its XRP cryptocurrency, which underpins it. The blockchain-based payment business Ripple, based in San Francisco, has drawn attention for its potential to transform international trade.

After hitting substantial resistance at $0.55, XRP entered a consolidation phase from a technical perspective. However, when looking at the hourly time frames, the trend looks encouraging because the price is making higher lows. This shows the need for patience until the barrier level is overcome, says “Altcoin Sherpa,” a crypto specialist.

Credit: TradingView

At press time, XRP was trading  at $0.48 after a 2.10% rise in the past 24 hours, as per data from CoinMarketCap.

Hopes of Successfully Soon Closing the SEC Chapter

Recently, Ripple received Singapore’s In-Principle approval of a major payments institution license, enabling it to expand consumer use of its On Demand Liquidity (ODL) product and provide regulated digital asset goods and services. This as well as collaborations with financial institutions can increase XRP’s usefulness and demand, which will ultimately have an impact on its price.

Notably, the increased interest in Ripple and XRP is partly related to the excitement around Ripple’s current legal dispute with the U.S. Securities and Exchange Commission (SEC) over the categorization of XRP as a security.

It’s important to note that Ripple’s victories over the SEC, such as the most recent release of the hotly contested Hinman documents, have been largely considered significant support for Ripple’s claims.

Ripple Labs has actively sought to dismiss the Security and Executive Commission’s (SEC) lawsuit against it, stating that XRP, unlike traditional securities, has the potential to be a digital currency because of its practical uses and decentralized features.

The company is challenging the SEC’s authority in this regard and slammed the regulatory body for not providing clear guidance on XRP’s status as a security.

Ripple claims that the ongoing legal dispute has adversely affected XRP holders and blocked progress in the cryptocurrency sector. The court’s decision on Ripple’s dismissal request is being eagerly awaited, and it could have a significant impact on the direction of the trial.

Should the request be granted, it could significantly weaken the SEC’s case, but if denied, the legal battle will continue with the SEC’s allegations against Ripple remaining active.

A favorable decision for Ripple might boost investor confidence and increase the likelihood that XRP will become a well-known cryptocurrency, hence the case’s conclusion is highly significant.

What’s the Game Plan?

While the whales’ large-scale XRP purchases are noteworthy, they are not the only factor at work. The slight price increase can be attributed to a general moderate positive attitude that is reflected in the larger cryptocurrency market.

The success of other digital assets, like XRP, is typically impacted by the performance of Bitcoin, the market leader in the crypto space, which has recently shown a minor upward trend.

It is crucial to monitor such significant swings made by whales in this volatile cryptocurrency market. His actions might pave the way for what happens to XRP and other cryptocurrencies in the coming days, weeks, and months.

Since the price of Bitcoin  has stabilized over the $30,000 threshold for a few weeks, it has been in the accumulation phase. High accumulation typically follows a trend reversal when the market performs poorly. This time, the BTC charts turned green, so it appeared to be the same.

Statistics show that since June 20, there have been roughly three times as many addresses in the aforementioned group. At the time of writing, the total was at an all-time high of over 331k.

According to an analyst  at blockchain research firm Cryptoquant, there was a large growth in the number of old addresses during an earlier analysis, and the rate was faster than the production of new addresses on the network. In essence, this indicated that many long-term holders were accumulating in preparation for future increases in the price of BTC.

Combining the aforementioned two findings, it became apparent that long-term coin holders were actually leading the accumulating trend among retail investors.

SEC Vs. Ripple 101

The SEC claimed in 2020 that Ripple raised more than $1 billion in 2013 by selling XRP to investors in an unlicensed security offering. In response, Ripple said that XRP is not a security and that the SEC did not receive fair notice.

Following the SEC’s response, which included asking the judge for an expedited hearing, the court extended the SEC’s deadline for publishing its internal crypto trading procedures until June 2021.

“XRP does not qualify as an investment contract,” claimed Ripple Labs in defense, claiming that the company had never really engaged into such a contract with its investors. Furthermore, being a virtual asset, XRP continues to be outside the purview of the SEC.

The president of Ripple Labs, Monica Long, stated  in a recent interview that “both the facts and the law” are on Ripple’s side.

The most recent development occurred yesterday when John E. Deaton, the lawyer who is representing hundreds of XRP investors, revealed that he had initially been disturbed by an email he had received.

However, it came out that there was only one lawyer who quit the case. This is a non-event, according to Marc Fagel, a seasoned SEC litigator, and Deaton.

Speaking of Fagel, he hinted a few weeks ago that a choice will be made shortly.