XRP whales continue to take advantage of the asset’s recent price correction to accumulate more tokens. Indeed, XRP’s price correction follows the overall crypto market decline alongside the token’s failure to sustain gains from the small gains recorded in the ongoing Ripple and Securities Exchange Commission (SEC) litigation.
XRP demand is booming among crypto whales! Why is that?
Specifically, as of December 21, XRP whale and shark addresses holding between 1 million and 10 million tokens rose to 1,617 in the last month of 2022. Data from crypto analytics platform Santiment shows that XRP tokens are held at 7.23%.
XRP shark and whale addresses. Source: Santiment
While the ongoing SEC litigation casts uncertainty over XRP’s future, whales are potentially betting on the asset over the long term.
Low prices potentially increase the need to save, but it’s worth noting that if whales continue to accumulate XRP with the goal of long-term investment, this move could cause a supply squeeze.
XRP price analysis
As the overall cryptocurrency market lacks overall bullish momentum, XRP has lost nearly 0.3% in the last 24 hours, losing key support levels to trade at $0.34 at press time. The weekly chart shows that the token has dropped by almost 14%.
XRP seven-day price chart. Source: Finbold
Before the latest correction, XRP targeted the $0.50 position after testing the $0.40 level following the overall market relief rally caused by positive macroeconomic factors; It formed resistance at $0.35.
At the current price, XRP has a support level of $0.33 and a breakout of the position could open the door for a drop to $0.31.
Impact of SEC lawsuit on XRP
Although XRP is trading alongside the overall market, the main key driver of the asset remains the SEC status. Specifically, both parties are waiting for the result after making the final presentations.
Interestingly, the crypto community predicted victory for Ripple, but legal experts argue that the case could go either way. The enthusiasm for Ripple’s victory stemmed from the small earnings the company made during the hearings.
It’s worth noting that with the delay in litigation, XRP has replicated the overall market sentiment, which continues the bearish trend.
While the crypto community awaits the final decision, the lawsuit is the latest development, with attorney Rodrigo Seira filing a lawsuit seeking to appear as pro pilgrimage assistant (an attorney of attorney from another jurisdiction) on behalf of crypto-focused investment firm Paradigm Operations.
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