XRP is showing signs of a gradual rebound, with a 4% surge in its price today, likely propelled by large-scale holders known as whales in its ecosystem. Among these are 221 addresses wielding between 10 million to 1 billion XRP tokens, collectively amassing 16.13 billion tokens valued at $8.71 billion.
Notably, recent data from Santiment also highlighted a similar surge in unusual whale activity for XRP, the fifth-largest crypto asset. This trend is part of a broader pattern across various assets, where these big holders seek to leverage the market’s discounted rates.
Following a landmark ruling on July 13, labeling XRP as a non-security for digital asset exchanges, the coin witnessed a peak of $0.947. Unfortunately, the bearish sentiment pervading the crypto market erased all the gains tied to this legal victory, causing XRP to plummet nearly 40% to reach a low of $0.57.
Even after a 2.71% uptick on August 19, the asset concluded the week with a 13.82% decline, settling at $0.5386. This unfortunately translated to a staggering loss of over $12 billion in market capitalization over the past month.
Interestingly, some cryptocurrency enthusiasts view the current $0.5 price level as an attractive entry point for long-term investors. Given the historical propensity of whales to capitalize on price dips for accumulation, a similar scenario might unfold for XRP.
Ripple/XRP Lawsuit: SEC Challenges Investment Contracts Determination
In the wake of Judge Analisa Torres’ July 13 ruling classifying XRP as a non-security on digital exchanges, the SEC countered with an appeal a few months later. This strategic maneuver by the US regulator reflects the broader implications of the Ripple case on ongoing lawsuits against other entities such as Coinbase and Dragonchain.
The SEC’s appeal targets specific legal determinations around investment contracts, building on undisputed facts. Ripple now holds the reins, facing a deadline of September 1, 2023, to respond to the SEC’s motion.
After Ripple’s response, the SEC has an additional week to counter-reply. If Judge Torres sanctions the SEC’s appeal, the next stage involves the regulator seeking a review of the case from the Second Circuit Court of Appeals.