XRP whales have been accumulating since February with just days to go until the SEC’s lawsuit against Ripple can reach its possible conclusion.
The XRP (XRP) price is currently outperforming all other major cryptocurrencies as of March 27, rising more than 20% in the last seven days.
XRP Accumulation Before SEC Ruling Against Ripple
XRP has posted steady gains over the past seven days as the ongoing legal dilemma between Ripple and the United States Securities and Exchange Commission (SEC) is expected to conclude by the end of March.
Meanwhile, the supply of XRP held by addresses with a balance between 10 and 100 million tokens has increased by more than 1% since February. That coincides with a 0.75% drop in the supply of XRP held by the address cohort of 1 to 10 million tokens.
Addresses holding between 1,000 and 1 million XRP tokens also increased their holdings in the same period. That shows that XRP whales accumulated more tokens in the days leading up to the ruling on the so-called summary judgment of the SEC against Ripple.
Multiple observers, including legal expert John Deaton, see Ripple winning the case, arguing that the SEC may not have given the company “fair notice” before suing it for committing securities fraud.
I have no doubt Ripple will win and the current Supreme Court will shut down the @SECGov‘s gross overreach. The West Virginia EPA case is all you need to read to agree with me. @Ripple‘s summary judgment brief is already an extremely well written appellate brief. https://t.co/o3g9zML9S2
—John E Deaton (@JohnEDeaton1) February 20, 2023
In recent months, Analisa Torres, the federal judge overseeing the lawsuit, has also favored Ripple on several motions. For example, she has approved Ripple’s demand that the SEC make its emails and internal cryptocurrency documents public, which could show that the regulator unfairly targeted the company.
25% retracement of the price of XRP in April?
From a technical perspective, the XRP rally has brought the pair close to a confluence zone of resistance, which may lead to a bearish reversal in the coming weeks.
The confluence comprises a multi-year descending trend line (black), a 200 exponential moving average on the 3-day chart (200-3D EMA; the blue wave) and a horizontal support-turned-resistance level around the USD. 0.50 (purple).
Additionally, XRP’s three-day RSI sees a close above its overbought threshold of 70, adding to the bear case for April.
In the event of a pullback, XRP’s next bearish price target appears at its multi-month uptrend line support (black) around $0.35, around 25% below current price levels.
On the other hand, a break above the downtrend line will see XRP price target $0.60 as its next bullish target.
This level has served as support in December 2021 and January 2022, and resistance in the September-October 2022 session. It is also the target of a prevailing bullish pennant structure.
This article does not contain investment advice or recommendations. All investing and trading involves risk, so readers should do their own research before making a decision.