The market for cryptocurrencies is still negotiating a phase of slow down. Still, a recent whale activity gives XRP, the native coin of Ripple some hope. Commonly known as a whale, a major investor bought a large 23 million XRP on Tuesday, which piqued fresh interest in the underprivileged coin.
Whale Movement: A Sign Of Shifting Tides?
Whale Alert, a system monitoring significant bitcoin transactions, found the buy. The tokens came from a Binance exchange wallet; the receiver address is yet unknown. Still, the fact that the recipient used Binance points to possible future trading activity.
Some analysts consider this whale movement as XRP’s possible turning moment. Large-scale whale purchases historically have sometimes preceded price spikes. Some analysts, meanwhile, warn against over interpreting things. There are other reasons why whales are active, hence one purchase does not ensure a continuous increasing trend for XRP.
🚨 23,037,429 #XRP (11,550,284 USD) transferred from #Binance to unknown wallethttps://t.co/K00G3Ry7ab
— Whale Alert (@whale_alert) April 29, 2024
Open Interest: A Mixed Signal
The latest drop in XRP Open Interest (OI) adds still another level of complication. Data from Coinalyze shows that XRP OI dropped 2.12% throughout the previous 24 hours. For a certain cryptocurrency, Open Interest shows the whole value of exceptional futures contracts. A decline implies a possible drop in leveraged positions, thereby indicating short-term selling pressure.
Still, analysts note that the constant contracts—which account for most XRP OI—have great weight at over $374 million. A fresh purchasing frenzy could cause the Open Interest trend to reverse, thereby maybe driving the price higher.
Total crypto market cap currently at $2.19 trillion. Chart: TradingView
The Lingering Shadow Of The SEC Lawsuit
Talking about XRP’s future cannot ignore the continuous legal struggle with the US Securities and Exchange Commission (SEC). The lawsuit, claiming XRP is an unregistered security, has surely clouded the performance of the coin.
Investors are nonetheless wary even if the lawsuit’s latest “remedies phase” suggests a possible settlement. The ultimate result and its chronology remain unknown, therefore casting a veil of uncertainty around XRP’s legal standing.
XRP Price Outlook: A Glimmer Of Optimism?
XRP is selling at about $0.50 right now, a big decline from its all-time high of more $3. The pricing captures the continuous legal struggle as well as the general market downturn.
For XRP enthusiasts, the recent whale buy combined with continuous SEC lawsuit negotiations gives some hope. Still, a continuous price rise depends on various elements. XRP needs a favorable outcome on the lawsuit and a wider market recovery if it is to recover ground lost.
Featured image from Pexels, chart from TradingView