XRP tokens are becoming the center of attraction for whales looking for top-performing tokens to purchase to bolster their portfolio.
Over the last few days, whales seem to like the Ripple-created token, as the data from the Santiment market shows the activities of digital asset whales as they purchase a massive amount of XRP Tokens.
According to Santiment, the whales’ accumulation of the tokens ran into millions of dollars over the previous week. Significant movement of an asset like this might suggest the Ripple native token would have to contend with significant implications from the actions of the whales.
The XRP token is not the first or last digital asset that whales have been accumulating; other notable coins have undergone some uncertainties after being wiped away by whales in some market corrections.
Why Are Whales Bullish About XRP?
The confidence whales have in Ripple is the most straightforward reason for the increased accumulation of the token. In addition, it has been revealed that more than 350 addresses belonging to whales contained up to 10 million XRPs.
The whales also believe that the blockchain finance technology adopted by Ripple can give it the upper hand in the ongoing legal battle with the Securities and Exchange Commission. The U.S. SEC charged Ripple for the alleged offense of raising more than $1.3 billion by using an unregistered securities offering, which is considered illegal.
Consequently, Ripple was slammed with a heavy fine, which the firm initially agreed to settle. Still, after some deliberations by the management, Ripple decided to challenge the SEC in court to find a lasting solution to the ongoing lawsuit it found itself in.
Does Ripple Have A Chance Against The SEC?
According to a former senior SEC official, Joseph Hall, the regulatory body did not do the right thing by filing a lawsuit against Ripple in the first place. However, Hall believes that the SEC would lose the case as all things were stacked against them.
Hall further added by saying that the SEC did not have open ground for initiating the case in the first place. Even if Ripple were to have done what it was accused of, the regulatory body’s handling of the matter would give it away.
Other fintech firms note the happenings and can even find ways to keep the SEC at bay.
Expected Price Levels
In 2020, the previous sentiments about the XRP token had always been the direction of the shift in the future, and it is still the same today. But whales’ ongoing token accumulation had seen their price rise significantly against Bitcoin, especially as the asset had been steady when the crypto market was in a slump.
Santiment noted that the above reasoning is valid for the expected price changes in the coming days, all things being equal.
Notwithstanding, analysts also believe that the first envisioned price increase of the XRP will likely happen if the legal tussle between Ripple and the SEC ends with Ripple’s victory.