Ripple (XRP) has recorded an increase of around 20% in the price curve since the start of the year. Large investors (whales) in particular seem to play an important role here. Is the optimism justified?
Ripple (XRP) has had a great start in 2023, since New Year’s Eve the price curve has increased by around 20%. With the Whale Alert data service, large XRP transactions are repeatedly noticed in this context, such as here or here Totals about 100 million US dollars. Profit taking seems to occur as frequently as subsequent buying by the so-called Ripple Whales, i.e. large investors. But where the whales come in, the discussion of price manipulation is not far off either.
We have reviewed these claims about XRP several times, most recently here in early January. Our result: A direct influence of the strategies of XRP Whales on the price curve cannot be proven, even if Ripple itself appears overwhelmingly as a market player. However, it is also clear that XRP, measured by its market capitalization, is selling above average on many trading days compared to other major altcoins such as Ethereum (ETH) or Binance Coin (BNB). Ripple therefore has to get used to the fact that XRP pricing comes with mistrust, even if rumors of manipulation lack tangible basis.
As already explained in the Ripple Annual Report 2022: The keystone of XRP’s prospects in 2023 remains the lawsuit filed against Ripple by the US Securities and Exchange Commission SEC, in which a judgment is expected no later than June. If the SEC prevails, XRP faces a US ban and Ripple could face fines of over $1 billion. If Ripple wins, the way would be clear for a return of XRP to the US market.
Conclusion: the future of XRP is uncertain
XRP remains a fragile game, and year-to-date gains cannot hide that. But the activity of whales and small investors shows uninterrupted interest in Ripple, which could prove the basis for lasting trends. A foundation has been laid here to begin with a positive court ruling for XRP in the United States. On the other hand, the legal dispute with the SEC carries major risks for Ripple. If you are now considering getting into XRP, you need to carefully weigh the pros and cons of Ripple.