XRP Price Jumps 7% to $2.51 as On-Chain Activity Surges Ahead of Ripple's SEC Lawsuit Resolution

The recent increase adds to a recovery of nearly 30% over the past two weeks. The rally comes amid growing on-chain activity and as Ripple's legal battle with the SEC approaches resolution.

XRP price has seen a strong rally of around 7% in the last 24 hours, bringing its value to $2.51. This recent increase adds to a recovery of nearly 30% over the past two weeks.

The rally comes amid growing on-chain activity and as Ripple’s legal battle with the SEC approaches resolution.

Two key on-chain factors may be driving this price move.

Firstly, whale investors holding over 1 million XRP tokens (worth about $2.5 million) have been in accumulation mode. These large holders have been busy adding to their stash of XRP, collecting 2.82 billion coins over the last couple of months. This represents a 6.5% increase in their supply.

Currently, whales control a total of 46.4 billion XRP tokens. Their continued buying despite previous market downturns could be a bullish signal for the cryptocurrency.

Secondly, there has been a surge in active addresses on the XRP network, especially in March. The activity levels are approximately six times higher than those recorded in January and February.

This increase in network activity often suggests growing interest in the asset. More users are making transactions on the blockchain, which typically indicates higher retail participation.

From a technical analysis perspective, XRP is forming what appears to be a symmetrical triangle pattern. This is considered a bullish continuation setup that forms after price consolidates within converging trendlines following a strong uptrend.

As of March 21, XRP bounced after testing the triangle’s lower trendline. It now appears to be moving toward the upper trendline near the apex point at $2.35.

If XRP breaks above this upper trendline, technical analysis suggests a potential target of $4.35 by June. This would represent a 75% increase from current price levels.

However, if the price drops below the lower trendline, it could invalidate this bullish outlook. In that case, XRP might fall toward $1.28, based on the triangle’s maximum height subtracted from the breakdown point.

On the legal front, there have been positive developments for Ripple and XRP. The SEC recently dropped its appeal against Ripple, contributing to the cryptocurrency’s 7.85% climb to $2.41 on March 21.

Further boosting sentiment, crypto exchange Bitnomial voluntarily dismissed its lawsuit against the SEC. The exchange then launched the first CFTC-regulated XRP futures in the United States.

These futures contracts allow traders to speculate on XRP’s value without directly holding the asset. This increased market activity helps deepen liquidity and makes it easier to execute large trades.

However, despite these positive developments, a legal obstacle remains. Judge Analisa Torres issued an injunction that restricts Ripple from selling XRP to institutional investors.

According to crypto lawyer John Deaton, this ruling could limit Ripple’s ability to distribute XRP directly to banks and financial institutions.

“If Ripple obviously wants to be able to issue XRP to banks in America directly, I think the hang-up is that injunction,” Deaton stated.

The price movement comes as part of a broader crypto market rebound. XRP is now trading around $2.51, representing an increase of more than 8% over the past seven days.

This price action follows a period of accumulation by large investors, commonly known as whales. These large investors, holding over 1 million XRP tokens (worth about $2.5 million), have been consistently adding to their stash of the cryptocurrency.

Over the past year, whales have maintained a trend of accumulating more XRP tokens, even during periods of price downturn.

The combination of increased whale holdings, higher network activity, technical pattern formation, and positive legal developments creates an interesting outlook for XRP in the coming weeks and months.