With a 200% increase in weekly active addresses, Ripple whales have accumulated $1.8 billion worth of XRP tokens. WisdomTree has filed S-1 registration for its XRP ETF with the SEC. Following the mass unlocking of Ripple tokens, several cohorts of XRP investors have realized over $2.7 billion in profits over the past three days. XRP is targeting a new high of $3.57 after clearing the $2.58 resistance level.
Ripple’s XRP continued its rise with a 25% gain on Monday, extending its monthly gain to more than 430%. Following the recent uptrend, the remittance-based token now ranks third among top cryptocurrencies, despite a mix of bullish and slightly bearish investor behavior over the past few days. Ranked.
Key XRP updates to watch out for during the recent bull market
XRP has seen increased buying activity by investors over the past three weeks following its recent rally, according to Santiment data.
The whale, which holds between 1 million and 10 million transfer-based tokens, has purchased 679.1 million XRP, currently worth about $1.8 billion. This comes after the number of non-empty XRP wallets surged to over 5.5 million for the first time since launch.
XRP investors have woken up, too, as weekly active addresses on the XRP Ledger have increased nearly 200% to 307,000 in the last month. This is the highest level since August 2023.
XRP supply distribution (1 million to 10 million), weekly active addresses and holders | Santiment
This bullish view is also evident in the XRP Coinbase premium, indicating that US traders are likely accelerating the recent price rally. As of November, the exchange's XRP premium ranged from 3% to 13%. However, Upbit, which holds the largest XRP reserves, maintained a moderate premium level.
Meanwhile, asset management company WisdomTree filed an S-1 registration statement for its XRP ETF with the SEC on Monday, after completing an initial registration in Delaware last week. With the latest filing, XRP has been added. In bits, 21Shares and Canary Capital.
This follows rumors that the New York government has approved Ripple's stablecoin trending in several investment subgroups on social media platform speculating about how it could fuel a bull market.
However, market activity was not all smooth sailing for XRP. Following the recent price rally over the weekend, XRP investors realized profits of over $2.7 billion, the highest in the past eight years. This shows investors are riding the wave and increasing profit-taking despite the recent whale build-up.
XRP Network Realized P&L | Santiment
The average coin age metric, which measures investor accumulation/distribution activity, is trending downward across all age cohorts. This indicates continued selling activity among short-term and long-term investors over the past three weeks.
Average coin age of XRP | Santiment
Additionally, Ripple on Sunday unlocked 500 million XRP tokens worth more than $1.35 billion as part of an escrow unlocking system. If this supply enters the market immediately, the current bullish momentum will slow down.
XRP bulls could aim for a new all-time high of $3.57
Ripple’s XRP broke through $2.58 resistance on Monday, triggering more than $91 million in liquidations in the past 24 hours, according to Coinglass data. The long and short positions liquidated were $38.67 million and $52.47 million, respectively.
XRP/USDT weekly chart
If XRP maintains its uptrend above the $2.58 level, it could rise to $3.57 to achieve the maximum profit target of the round bottom pattern. The remittance-based token validated that pattern after rising above the $1.96 level last week.
The bullish momentum was further strengthened by XRP futures open interest (OI) rising to an all-time high of $4.24 billion on Monday.
Open interest is the total amount of outstanding contracts in the derivatives market. An increase in OI during an upward price trend means that new money is flowing into the market supporting the bullish momentum.
XRP Open Interest | Coin Glass
The Relative Strength Index (RSI) has remained high in oversold territory for the past week, indicating an impending correction due to overheating in prices.
The bullish theory will be invalidated if the weekly candlestick falls below $1.96.
SEC vs. Ripple Litigation Frequently Asked Questions
According to a court ruling released on July 14, 2023, it depends on the transaction: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who purchase tokens through programmatic sales on exchanges, on-demand liquidity services, and other platforms, XRP is not a security.
The U.S. Securities and Exchange Commission (SEC) has accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering for the XRP token. Although the judge ruled that programmatic sales are not considered securities, the sale of XRP tokens to institutional investors is indeed an investment contract. In this last case, Ripple violated US securities laws and had to pay a $125 million civil penalty.
Depending on how you look at it, this ruling represents a partial victory for both Ripple and the SEC. Ripple scores a major victory over the fact that programmatic sales are not considered securities, and most of the assets targeted by the SEC crackdown are decentralized businesses that primarily sold tokens to retail investors. This could bode well for the broader cryptocurrency sector, as it is being handled by a large number of investors. According to experts, via exchange platforms. Still, this ruling does little to answer the important question of what makes a digital asset a security, making this case a precedent for other unresolved cases affecting dozens of digital assets. It is not yet clear whether this will be the case. Conversations continue about how much decentralization is appropriate to avoid the “security” label, and where to draw the line between institutional and programmatic sales.
The SEC has stepped up enforcement actions against the blockchain and digital asset industry, charging platforms such as Coinbase and Binance for allegedly violating U.S. securities laws. The SEC claims that most crypto assets are securities and are therefore subject to strict regulation. Defendants could use some of the Ripple ruling to their advantage, but the SEC could also see reason to maintain its current strategy of enforcement regulation.
