XRP facing uncertainty : Whales and the Ripple-SEC trial weigh on the market

XRP has experienced a decline of nearly 2 % in just 24 hours. Indeed, it is the strategic movements of whales that are shaking the market. Their influence on prices is not insignificant and can tip forecasts in an instant. Yesterday, Friday, October 18, 2024, the massive sales of several million tokens by these key players reminded us how fragile the market dynamic can be.

Whales on the offensive in XRP

The massive movements of XRP tokens observed in recent days have put considerable pressure on the market, with a drop in the crypto’s price. According to the latest data, several large-scale transactions were made by “Ripple whales.” For example, one of these whales transferred no less than 20 million tokens to the Kraken platform, a transaction valued at approximately $10.98 million. Another major transaction saw 28.3 million tokens, or nearly $15.39 million, sent to the Bitso exchange. The massive sales, occurring in such a short period of time, have created a shockwave among investors, raising concerns about future massive sales that could further weaken XRP’s price.

This increased selling pressure comes in an already tense context for Ripple, as the ongoing legal case between the company and the United States Securities and Exchange Commission (SEC) continues to drag on. The uncertainty surrounding the outcome of this litigation makes market forecasts for XRP even more challenging. Some investors believe that this situation could delay the token’s recovery, even under more favorable market conditions. Thus, the current situation mixes both technical movements linked to these massive sales and legal uncertainty that plunges XRP into a phase of prolonged volatility.

Legal uncertainties and increased volatility

Alongside the sales made by the whales, the lawsuit between Ripple and the SEC continues to weigh heavily on XRP’s price. The SEC even filed a last-minute appeal in this case, further delaying any quick resolution of the conflict. This new extension could maintain downward pressure on XRP’s price, with uncertain prospects until at least 2025. The potential for this case to drag on for at least another year has dampened investor hopes. Additionally, the slow pace of legal developments deeply impacts Ripple’s ability to capitalize on potential bullish conditions in the sector.

Besides this legal obstacle, the low interest shown by investors is also reflected in the stability of open positions on XRP futures contracts, a sign of increased uncertainty in the market. While other cryptos are generating renewed interest, XRP is struggling to attract new investment flows, largely due to these external factors. This combination of massive sales and legal extensions maintains an atmosphere of mistrust, increasing market volatility.

The news surrounding whale sales and Ripple’s legal uncertainties demonstrates how the crypto market can be influenced by multiple and complex factors. Indeed, volatility is expected to continue for XRP, as long as massive sales persist and the case with the SEC remains unresolved. For investors, it is important to closely follow the upcoming developments, as they could either worsen the situation or, conversely, offer an unexpected opportunity for XRP.