SEC has been in a prolonged struggle with Ripple, which now faces a potential fine of nearly $2 billion. An official response to the SEC’s court request will be given next month, and if the worst-case scenario occurs, this massive fine could negatively affect investors. Meanwhile, what are the XRP Coin whales doing?
The Future of XRP Coin
Although the circulating supply of XRP Coin has rapidly increased over the years, leading to growth in market value, the unit price is facing a significant issue. Even though it reached its market value peak in 2021, a ceiling of $1.35 has formed for the unit price of XRP Coin. This is a major problem caused by the increasing circulating supply over the years.
Another negative development is the roughly $2 billion fine that the SEC intends to impose. It is known that the company has about $1 billion in cash. However, this cash reserve does not cover the entire fine. Moreover, it does not seem sensible to use all of it for operational expenses and other items.
Therefore, the company needs to sell more XRP to make up the difference. But can the spot markets handle this massive supply of XRP sales? In addition, there is a risk that the decision not to classify the sales on exchanges as securities during the collective appeal process could be overturned. These three reasons are undermining medium and long-term optimism.
XRP Coin Whales
There is a notable increase in the number of XRP Coin whales with holdings ranging from 10 million to 100 million. The number of addresses rose from 1,537 on March 16 to 1,565 on March 28, indicating that the price hovering around $0.62 has whetted someone’s appetite. While most cryptocurrencies have climbed back to their early 2022 and late 2021 levels, XRP Coin has not yet reclaimed the $1 threshold.
There is also an increase in XRP Coin network activity. On March 9, the number of daily active addresses reached 47,930, which was a significant peak. Immediately following this, the price quickly climbed from $0.63 to $0.72 within the next two days.
Looking at the technical aspect, there is still a risk of a drop to the $0.58 support level. If this support is breached, the price is likely to fall to $0.51.
