XRP is facing challenges in maintaining its upward momentum following the summary judgement in the United States Securities Exchange Commission (SEC) v. Ripple Labs case, which ruled that XRP is not a security. As a result, investors are selling off their holdings, and a significant whale has transferred 29 million XRP, worth over $15 million, to a crypto exchange.
On August 24, Whale Alert reported that a large XRP holder moved 29.3 million XRP to Bitstamp exchange. This move suggests that the whale may be selling their XRP assets since they had previously transferred 14 million XRP to Bitso just a few hours earlier.
The decision by Judge Analisa Torres to allow the SEC to submit an interlocutory appeal regarding XRP token sales had a significant impact on the market. As a result, XRP’s price experienced a sharp decline, breaking crucial support levels at $0.6 and $0.5.
Currently, XRP’s price is recovering from the support level at $0.5, but there is a significant risk of a further drop if traders and whales choose to liquidate their holdings. The trial between Ripple and the SEC is expected to take place around the end of April or mid-May, aligning with the court notification from both parties. This timeline coincides with the unavailability of Ripple Labs’ CEO Brad Garlinghouse and executive chairman Chris Larsen in the second quarter of 2024. Despite the rebound in price following this announcement, the bullish momentum was not sustained.
In the past 24 hours, the value of XRP has declined by over 3% and is currently trading at $0.51. The price has fluctuated between $0.510 and $0.528 during this period, and the trading volume has decreased.
The uncertainty surrounding the SEC v. Ripple case and the potential liquidation of XRP holdings by traders and whales have created a challenging environment for XRP. Investors will need to closely monitor the developments in the case and the market sentiment to make informed decisions about their XRP investments.