Price Prediction for Ripple (XRP): Whales Respond to SEC Penalty with $180M Move
HIGHLIGHTS :
- Early on April 7, the price of XRP retested the $0.60 region; nevertheless, a peculiar pattern seen by whale investors may impede the recovery stage.
- Whales have dumped more than $170 million worth of XRP tokens into the markets after the SEC levied a $2 billion punishment on Ripple in late March.
- The bulls are still some way off from taking back the 20-day SMA zone, according to the Bollinger band indicator.
On April 7, the price of XRP made a shameless attempt to reenter the $0.60 range, but the recovery effort may be jeopardized by an odd selling tendency among whale investors.
Is XRP about to have another downturn this coming week, with Ripple facing yet another penalties from the US Securities and Exchange Commission (SEC)?
Following a $2 billion fine from the SEC for misconduct, whales go on a $180 million selling binge
The previous week has seen significant price fluctuation for XRP, which is backed by Ripple, due to ongoing legal disputes with authorities. The primary negative drivers and potential future movements of XRP values are shown by on-chain data patterns.
Brad Garlinghouse, the CEO of Ripple, disclosed on March 25 that the team anticipates the US Securities and Exchange Commission (SEC) attempting to levy a $1.95 billion fine on Ripple. This occurred after the agency was successful in proving some of its allegations about Ripple’s unlawful securities sales to institutional investors through direct sales of its XRP Coin.
The XRP community went into a flurry of conjecture on Friday as the SEC formally filed the motion under seal in a US District court. Traders were trying to outwit the possible impact of the penalty.
The CEO of Ripple reassured the community that the business is financially positioned to cover the fines. Beyond the headlines, however, on-chain data reveals that corporate organizations and whale investors with at least 1 million XRP (~$580,000) did not feel the same way.
The Santiment graphic below gives real-time insights into the emotions and trading behavior of whale investors by tracking their wallet balances.
Strategic retail swing traders could be reluctant to go against wealthy whales that own more than 44.9 billion XRP. In the next days, the price of XRP may find it difficult to launch a significant upswing phase if small-hold retail traders adopt negative positions as well.
Price prediction for XRP: Consolidation at $0.60 This next week?
The $180 million sell-off by whale investors is expected to push prices down, thus it’s more probable that XRP will stabilize around $0.60 in the next days rather than decisively breaking over $0.70.
This position is supported by the Bollinger band technical indicator. It demonstrates that even with a 6% increase from April 3 to April 7, the bulls are still a ways off from taking back the 20-day SMA price mark at $0.61 and recovering ground in the market.
The price of XRP will probably continue to consolidate around $0.60 in the foreseeable future as anticipated if the major resistance sell-wall is not scaled.