XRP, the cryptocurrency linked to Ripple, has seen a notable increase in whale activity, according to data from cryptocurrency analytics platform Santiment. Large investors have been accumulating or moving significant amounts of XRP, signaling increased interest in the controversial token.
Transaction Volume Hits Eight-Month High
In addition to heightened whale activity, XRP has also experienced a surge in social media discussions and transaction volume. The cryptocurrency’s transaction volume recently reached a new eight-month high, peaking at $2.39 billion.
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This increase came on the heels of a filing by Bitwise, a major cryptocurrency asset manager, to launch an exchange-traded fund (ETF) based on XRP in the United States.
ETF Filing Fails to Deliver Immediate Gains
Although experts do not expect approval of an XRP-based ETF in the near future, the filing is seen as a step toward gaining more legitimacy for the cryptocurrency. However, despite the optimism surrounding the filing, XRP’s price did not experience significant gains. Instead, the token ended the day in negative territory, with the filing failing to generate the expected price rally. Santiment suggests that XRP’s rally might take off once the current crowd’s fear of missing out (FOMO) cools down.
SEC Appeal Sends XRP Price Plummeting
XRP holders faced additional setbacks on Wednesday when the U.S. Securities and Exchange Commission (SEC) decided to appeal its ongoing case against Ripple. This news led to a sharp price decline, with XRP dropping 15% over the past 24 hours.
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The token, which is currently trading at $0.51, is now one of the worst-performing assets in CoinGecko’s top 100 cryptocurrencies. The market capitalization of XRP has fallen to $28.9 billion. Following the SEC’s appeal, options traders on Deribit turned more bearish on XRP.
While experts do not expect the SEC ruling to be overturned in the near future, the prolonged legal battle is considered a significant bearish factor for XRP. The ongoing uncertainty continues to weigh heavily on the token’s outlook.