XRP Whales Exit Market Despite SEC Victory, Price Drops 4%

Ripple recently secured a significant victory as the SEC formally dropped all remaining claims against the company, marking the end of a years-long legal battle. This decision was anticipated to boost investor confidence in XRP, the cryptocurrency associated with Ripple Labs. However, an unexpected development has emerged: XRP whales, holding more than 1 million XRP tokens, have been exiting the market. This trend has left investors puzzled, as many had expected the positive outcome of the case to renew confidence in XRP and drive a bullish rally.

The SEC case against Ripple began in December 2020, with the regulatory authority accusing the company of selling unregistered XRP securities. The legal battle had a significant impact on XRP's market performance, causing the price to underperform for years. The recent decision by the SEC to drop the case came after previous court decisions that disproved the SEC’s claims, providing a significant victory for XRP and the broader cryptocurrency community. This development raised expectations of an XRP bull run, as investor sentiment improved dramatically following the announcement.

Despite the positive outcome of the case, XRP whales have been migrating to other assets. Blockchain tracking services have revealed that the number of wallets holding more than 1 million XRP has been on a steady decline. This update comes days after Ripple’s victory, raising questions about why large investors are exiting the market instead of taking advantage of the breakthrough. Several developments in recent weeks have shaken investor confidence, including Donald Trump’s announcement of reciprocal and additional sector-specific tariffs, and the Federal Reserve’s uncertain standing on tariffs and interest rates. Additionally, comments from the ECB about how US policies may bring about a global financial catastrophe have further stirred up market sentiment. Given these conditions, XRP whales may be hedging their funds, hoping to ride out what some are dubbing ‘an incoming market storm’.

When the news of the SEC dropping the XRP case came out, investors carried bullish sentiments, and a huge rally was expected for XRP. Appropriately, a massive spike was seen. However, the bullish trend seems to have lost some steam already, as the XRP price has not been able to maintain support levels. A slow downtrend was observed. XRP started the previous day, maintaining close to the $2.59 resistance formed after the spike. A sizable downtrend occurred as XRP was brought down to $2.43. Consequently, XRP made several efforts to get back up but was stopped in its tracks by the $2.53 resistance. After its third attempt at 14:15 UTC, XRP eventually experienced a downturn, leading it to find support at $2.386. As the price appreciated a little, a trading range formed. While an upward breakout was anticipated, the buying pressure could not take it far. Another downtrend led XRP back to the $2.38 base. XRP continued to launch off, but the buying trend has not been able to support the upward movement.

While the buzz did drive XRP price temporarily, the loss of whale activity has led to a significant reduction in the magnitude of buying pressure. Due to this, XRP has not been able to sustain any positive movement. Within a day, XRP has gone down by around 4%, and there aren’t any positive signs on the indicators for now. For today, XRP looks poised to breach through the support and spend some time in the $2.30 range. The market impact extended beyond just XRP. Bitcoin rose 3.2% to $85,972, while Ethereum gained nearly 4% to $2,019 following the news. The global cryptocurrency market capitalization increased by 3% to $2.81 trillion within 24 hours of the announcement. This demonstrates how regulatory clarity for one major project can boost the entire market. The future looks bright for XRP as regulatory clarity improves its market position. However, the current market conditions and the exit of XRP whales raise questions about whether XRP can still hit $3. According to the analyst's forecast, XRP could reach targets between $3.94 and $4.50 in the coming months. Some more optimistic projections see XRP potentially rising above $6 if the current bull cycle continues. These price targets would represent all-time highs for the cryptocurrency. Adding to the positive outlook, Ripple CEO Brad Garlinghouse hinted in an interview that XRP could play a role in a U.S. strategic digital asset stockpile. This followed President Donald Trump’s executive order in early March proposing a national crypto reserve.