Unusual Activity in XRP Holdings Before SEC Decision

According to a recent analysis by Santiment, large XRP wallets significantly increased their holdings by approximately 6.5% in the two months leading up to the announcement that the U.S. Securities and Exchange Commission (SEC) had dropped its appeal against Ripple.

Large XRP wallets increased their holdings by 6.5% in the two months leading up to the SEC’s decision to drop its appeal against Ripple.

During this period, the Ripple network saw a sixfold surge in unique wallet activity.

However, despite the unusual activity, it is difficult to claim that insider trading took place.

According to analysts, the SEC’s decision was widely anticipated, and XRP’s price had already priced in the news following Trump’s victory in the November elections.

Some investors are now questioning if it’s time to short XRP as many bullish catalysts have already materialized.

According to reports, several large XRP wallets increased their cryptocurrency holdings by an average of 6.5 percent in the two months leading up to the U.S. Securities and Exchange Commission’s (SEC) decision to drop its appeal against Ripple.

During this period, the Ripple network also experienced a sixfold increase in unique wallet activity, contrasting sharply with the decreased user activity observed on other blockchain networks.

However, despite this unusual market movement, it’s difficult to claim that any insider trading took place.

According to crypto analysts, the SEC’s decision was widely anticipated, and some experts suggest that XRP’s price had already factored in the news following Donald Trump’s victory in the November elections last year.

Is It Time to Short XRP?

With XRP’s price having surged after the SEC’s dropped appeal, some investors are questioning whether the cryptocurrency is now overvalued. Many of the bullish catalysts that propelled XRP upward have already materialized, leading to speculation that a correction could be imminent.

While Ripple effectively “won” its legal battle against the SEC, it still faces financial penalties. The company has stated its intention to contest these fines, but the crucial takeaway is that the SEC will not pursue further legal action, removing a significant overhang on the asset.

Some analysts are interpreting the heightened social media attention around XRP as a contrarian signal, suggesting that the hype may be overblown. Historically, spikes in online discourse have preceded market corrections, leading certain traders to consider shorting XRP in anticipation of a pullback.

According to crypto analyst Ali Martinez, who has amassed hundreds of thousands of followers on X (formerly Twitter), a concerning technical pattern forming on XRP’s chart could spell trouble for the cryptocurrency.

As highlighted by Martinez, the recent surge and subsequent retracement in XRP’s price has created a classic “head-and-shoulders” pattern. This technical formation is often regarded as a bearish signal, typically preceding significant price declines.

If the pattern plays out as expected, Martinez warns that XRP could face a 50% drop, bringing its price down to around $1.25.

Key Takeaways for XRP Traders