XRP whales continue to take advantage of the asset’s recent price correction to accumulate more tokens. Indeed, XRP’s price correction follows the general crypto market plunge alongside the token’s inability to sustain gains from the minor wins recorded in the ongoing Ripple and Securities Exchange Commission (SEC) case.
In particular, as of December 21, XRP whale and shark addresses holding between 1 million to 10 million tokens increased to 1,617 in the last month of 2022. Notably, the holding has elevated the addresses to account for the all-time high share of the XRP tokens held at 7.23%, data by crypto analysis platform Santiment indicates.
Although the ongoing SEC case resulted in uncertainty regarding the prospects of XRP, the whales are potentially betting on the asset for the long term.
The low prices are potentially driving the need for accumulation, but it’s worth noting that if the whales continue amassing XRP with the target of long-term investment, the move could result in a supply squeeze.
XRP price analysis
With the general cryptocurrency market lacking general bullish momentum, XRP has lost key support levels to trade at $0.34 by press time, with losses of about 0.3% in the last 24 hours. The weekly chart indicates that the token has plunged by almost 14%.
Before the latest correction, XRP targeted the $0.50 position after testing the $0.40 level following the general market relief rally induced by the positive macroeconomic elements; it has formed resistance at $0.35.
At the current price, XRP has a support level of $0.33, and breaching the position could open the door to a slump to $0.31.
The implication of the SEC case on XRP
Although XRP has traded in tandem with the general market, the asset’s main fundamental driver remains the SEC case. Notably, both parties are awaiting the conclusion after making final submissions.
Interestingly, the crypto community has predicted victory for Ripple, but legal experts maintain that the case could go either way. The enthusiasm for Ripple’s victory emerged from the company’s minor wins during the hearings.
It is worth noting that with the case’s conclusion delayed, XRP has replicated general market sentiments that remain bearish.
As the crypto community awaits the final ruling, the case recorded the latest development with Rodrigo Seira, an attorney filing a motion requesting to appear as pro hac vice (an attorney counsel from another jurisdiction) on behalf of the crypto-focused investment firm Paradigm Operations LP.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/xrp-demand-booms-among-crypto-whales-as-accumulation-hits-an-all-time-high/