- The price of XRP has fallen near the critical supply barrier as the altcoin market slows.
- According to Ripple’s quarterly market report, despite the SEC’s lawsuit, 90% of XRP’s volume remains the same.
- The accumulation of whales indicates a possible recovery in prices.
XRP price may head to greener pastures as a recent report revealed that transaction volumes continue to increase despite legal uncertainty. Meanwhile, high net worth individuals have resumed the buying frenzy.
Ripple moves business out of the US due to legal uncertainty
The price of XRP suffered a massive setback after the US Securities and Exchange Commission slapped Ripple in a class action lawsuit. According to the distributed ledger company, the charges brought “uncertainty to American players” about this cryptocurrency and stifled “American innovation and progress.”
An important development of the case is the introduction of the Freedom of Information Act (FOIA). Ripple recently asked the FSA to provide information on how to exclude Bitcoin and Ethereum as not being securities. The company hopes these documents will help dismiss the case.
While the lawsuit has caused some prominent crypto exchanges to cancel or suspend XRP trading activity, Ripple’s Q4 2020 report states that “90% of XRP volumes remain unchanged.” [because] Several market participants have moved forward in XRP-related businesses outside the United States.”
Moreover, Ripple’s On Demand Liquidity (ODL) saw a twelvefold growth in transaction volumes annually and the addition of fifteen new customers. Meanwhile, SBI Holdings announced the addition of XRP to its cryptocurrency lending service.
XRP Price Holds Above Critical Support As Whales Buy On Decline
The price of XRP managed to pull itself out of the doldrums at the beginning of the month. The market cap of this cryptocurrency has increased by 200%. But this was followed by a sharp correction as traders took advantage of the higher price action to get out of their flooded positions.
While volatility remains high, XRP price continues to hold above the $0.40 support level showing signs that it wants to maintain its bullish momentum.
XRP/USD 1 Day Chart
In fact, XRP whales are getting out of the woodwork and increasing their holdings at an exponential rate. The number of addresses containing 1,000,000 to 10,000,000 XRP has increased by approximately 2.60% since February 1.
Such behavior indicates that whales are confident in the future of XRP.
Hodlers XRP Distribution Chart
As long as XRP price continues to hold above the $0.40 support level, odds are that the bulls will favor the bulls as the buying pressure seen recently will reflect on its market value. However, a breach of this barrier could lead to a drop of 20% to $0.24.