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The US SEC has toned down on crypto regulation thus giving the impression of an upcoming resolution with Ripple on XRP institutional sales.
Ripple Labs-backed XRP has gradually decoupled from the influence of Bitcoin (BTC) in the crypto industry over the past few weeks. The large-cap altcoin, with a fully diluted valuation of about $65 billion and a daily average traded volume of around $3 billion, pumped more than 8 percent in the last 24 hours to trade about $0.6462 on Wednesday during the early London session.
On the other hand, Bitcoin price traded around $66K, down over 4 percent after being rejected at about $70K again.
XRP Whales on the Hunt
According to on-chain data analysis provided by market intelligence firm Santiment, the number of XRPL accounts holding at least 10K XRP units has continued to grow exponentially year-to-date. Precisely, the number of XRPL accounts with more than 10K XRP units reached a six-month high of around 279.4K.
In the last five weeks, XRP whales increased by around 2,389 accounts, thus fueling the recent bullish breakout. Similarly, Santiment noted that XRPL accounts with more than 100k XRP units have gradually increased in the past five months.
🐳🦈 The amount of wallets holding at least 10K XRP has skyrocketed in the past 5 weeks. 279.4K such shark & whale addresses exist on the ledger, returning to a 6-month high. The correlation between these wallets and XRP's market value has been undeniable throughout 2024. 👍 pic.twitter.com/JRT3629sJH
— Santiment (@santimentfeed) July 30, 2024
Meanwhile, Ripple is expected to unlock 1 billion XRP units from the escrow account by tomorrow, with the majority likely to be locked back. Furthermore, Ripple has been attempting to regulate its monthly sales amid the ongoing legal battles with the US SEC.
Improving Fundamentals
Despite the legal challenges in the past few years, XRP has managed to remain in the top ten list of most valuable digital assets. The Ripple team led by CEO Brad Garlinghouse has continued to build necessary infrastructure to enable mainstream adoption of XRPL and XRP.
For instance, Ripple recently announced the launch of the XRPL EVM sidechain to enable seamless web3 development in the future. Already, Ripple has unveiled a Web3 developers fund, especially focused on Japan and South Korea’s markets.
Earlier this year, Ripple’s core developers unveiled native DEX and AMM on the XRPL network to help improve the liquidity of XRP. Amid the rising adoption, CME Group listed XRP on its derivatives market earlier on Tuesday.
In preparation to launch its stablecoins dubbed RLUSD, Ripple has teamed up with ClearBank, and Zero Hash, among others.
Meanwhile, the Ripple team anticipates a fast resolution with the US SEC following the recent unfolding. Notably, the US SEC has dropped investigations into several crypto projects in matters related to securities laws.
Midterm Prediction
Having pumped more than 35 percent in the last four weeks, the XRP price has approached a crucial resistance level of around 66 cents. A consistent close above 66 cents will push the XRP price to the next target of about 75 cents.
If the XRP price fails to maintain bullish momentum, a possible correction to the support range between 54 cents and 50 cents will be inevitable before the final breakout to an all-time high.
