Crypto whales are turning away from XRP after the latest developments in the SEC-Ripple lawsuit. The altcoin started the day with a sharp drop of around 3.5%.
Altcoin whales react to latest news from SEC-Ripple lawsuit
Beginning in late 2020, the legal battle between the SEC and Ripple achieved a partial crypto victory on July 13. Judge Torres ruled on this date that XRP does not constitute an investment contract. However, it decided that XRP violated federal securities laws. cryptocoin.comAs we reported, XRP recorded a 90% price increase after the victory.
The partial Ripple victory was then replaced by a potential appeal process. Judge Torres this week allowed the SEC to file an interim appeal in response to XRP sales. Speculation that the outcome will change has caused a sharp drop in the altcoin price. XRP price lost two critical support levels at $0.6 and $0.5. Whales who follow the news are reacting with emergency sales…
Another whale melts XRP reserves
Whales and investors are selling their XRP for failing to maintain its bullish momentum following Judge Torres’ summary ruling in the SEC v Ripple Labs case that XRP is not a security. Now another whale has transferred 29 million XRP to the exchange wallet as the altcoin approaches critical support. This transfer, which would probably turn into a sale, carried over $15 million in funds.
Whale Alert reports in a new post that a whale moved 29,300,000 XRP worth $15.13 million to Bitstamp. More data revealed that the whale would potentially sell XRP. A few hours ago, another whale sold 14 million XRP via Bitso.
🚨 29,300,000 #XRP (15,130,884 USD) transferred from unknown wallet to #Bitstamphttps://t.co/DhcHkKNdzc
— Whale Alert (@whale_alert) August 24, 2023
XRP price is currently struggling to maintain the $0.5 support level. The altcoin risks a huge drop if investors and whales decide to sell more.
Meanwhile, the Ripple-SEC lawsuit is expected to take place in late April or mid-May as plaintiff SEC and defendants Ripple Labs, CEO Brad Garlinghouse and chairman Chris Larsen have informed the court that they will not be available in the second quarter of 2024. In response to this, the XRP price has seen some recovery. However, the bulls failed to sustain the upside momentum.
XRP price faces 0.42 bearish risk: Altcoin bears press
According to CMC data, the bearish candle wick on the XRP chart rose as high as $0.42 last week. It is still unclear whether it will recover from the rising trendline towards the coveted $1 for the popular altcoin. Moreover, dips point to lows of $0.42 or worse yet, $0.3.
Technically speaking, XRP is trading below all major moving averages at $0.253 including the 50-day EMA (red), 100-day EMA (blue), and most importantly, the 200-day EMA (purple).
Meanwhile, the XRP price has lost more than 3% after the last whale sales. It is currently trading in the $0.5 region. The 24-hour lows and highs are $0.510 and $0.528. There has also been a significant drop in trading volume in the last 24 hours. Meanwhile, the altcoin market continued its sideways movements.
