Whales Holding XRP Amass Significant Holdings While The Price Drops 14% in Only One Week

The price of XRP, the Ripple network’s native cryptocurrency, has been declining recently, falling 14% in just one week. Despite this pessimistic outlook, some fascinating advancements have been made in the field of XRP whales. The quick accumulation of XRP by these huge investors, who possess substantial amounts of the cryptocurrency, has sparked speculation that they might be holding onto XRP in anticipation of a potential price hike.  

XRP Price Decline

The recent price decline of XRP can be attributed to several factors, including the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple in December 2020, alleging that XRP is an unregistered security. This lawsuit has cast a shadow over XRP and has undoubtedly contributed to the recent price drop.

In addition to the SEC lawsuit, the broader cryptocurrency market has been experiencing a correction in recent months. This has put downward pressure on all cryptocurrencies, including XRP.

XRP Whale Accumulation

Despite the recent price decline, XRP whales have been accumulating XRP at an alarming rate. On-chain data shows that these large investors have been buying large amounts of XRP recently. This suggests they believe that XRP is currently undervalued and that the price is poised for a rebound.

There are several reasons why XRP whales might be accumulating XRP. First, they may believe the SEC lawsuit will eventually be settled in Ripple’s favor. If this happens, it could remove a significant overhang from the XRP market and lead to a substantial price increase.

Second, XRP whales may be anticipating increased adoption of the Ripple network. Ripple is a payment network that several financial institutions use. If ripple network adoption continues to grow, the demand for XRP could increase, leading to a price increase.

Third, XRP whales may simply be buying the dip. The recent price decline of XRP offers these large investors an opportunity to accumulate XRP at a discount.

What does this mean for XRP investors?

Whales’ recent XRP accumulation is encouraging the future of cryptocurrency. It implies that significant investors may still have faith in its long-term prospects. It is important to remember that there is no assurance that the price of XRP will rise because the cryptocurrency market is quite erratic.

Investors who are thinking about buying XRP should thoroughly assess their investment objectives and risk tolerance. There isn’t a definite end to the SEC complaint. Shortly, this uncertainty might keep pressing down on the price of XRP.

Long-term prospects for XRP will be influenced by several variables, such as how the SEC action turns out if the Ripple network is adopted and how the cryptocurrency market performs.

Ripple has three business days to respond to the SEC in the meantime. This scheduling change is noteworthy after Judge Netburn’s nomination to the Southern District of New York as District Judge, retaining her case management role.

However, amid a broader selloff in the cryptocurrency market, the XRP price could not sustain its upward pace despite the significant whale accumulation. To put things in perspective, the biggest cryptocurrencies, like BTC, SOL, SHIB, and others, and the entire crypto market have seen a significant downturn recently.

Also read:

• XRP Price Rises As Ripple Prepares to Face SEC Punishment
• How Can You Buy Bitcoin on eToro? Detailed Guide