XRP sees growing investor confidence following SEC ending legal battle against Ripple
|
- XRP whale holdings and network activity signal rising optimism among investors.
- However, signs of bearish sentiment in the derivatives market could hamper XRP's price growth.
- XRP could retest the $2.60 resistance if it bounces off the upper boundary of a descending channel.
Ripple's XRP trades near $2.43 on Thursday after seeing a rejection at the $2.60 resistance. The remittance-based token has seen a 400% growth in network activity since the beginning of March. The growth may continue, considering the Securities and Exchange Commission (SEC) recently dropped its appeal against Ripple.
XRP on-chain metrics signals growing investors' confidence
XRP whales expanded their holdings by 10% in the past two months. Despite prices being subdued by macroeconomic factors, these whales — wallets holding between 1 million to 10 million XRP — continued accumulation, boosting their holdings to 5.81 billion XRP worth about $14 billion.
 [00.01.03, 21 Mar, 2025]-638781085317376765.png)
XRP supply distribution. Source: Santiment
However, whales holding between 10M to 100M XRP have seen a mix of distribution and accumulation during the same period.
Meanwhile, XRP network activity has skyrocketed since the beginning of March, with over 400% more daily active addresses than recorded in February.
 [00.04.11, 21 Mar, 2025]-638781086694926885.png)
XRP active addresses. Source: Santiment
Additionally, XRP Dormant Circulation shows investors have significantly slowed down their distribution in the past few days. Holders remained relatively mute despite the price increase on Wednesday.
The combination of these metrics suggests rising optimism among investors in XRP's growth potential, especially with the recent announcement that the SEC has ended its legal battle with the company.
However, the strong bullish sentiment doesn't extend to the XRP derivatives market, where funding rates are flashing negative. This partially explains the reason for XRP's recent retracement after rising about 14% on Wednesday.
XRP funding rates. Source: Coinglass
In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse expressed optimism that an XRP ETF will debut in the US in 2025.
"I have immense confidence in the [XRP] ETF," said Garlinghouse. "I think those will be live in the second half of the year," he added.
The SEC recently delayed its decision on several XRP ETF filings from asset managers, including Bitwise, Franklin Templeton and 21Shares. Garlinghouse also mentioned that the US digital asset stockpile will likely include XRP.
XRP could bounce off descending channel's upper boundary
XRP experienced $13.86 million in futures liquidations in the past 24 hours, per Coinglass data. The total amount of liquidated long and short positions accounted for $11.68 million and $2.18 million, respectively.
XRP saw a rejection at the resistance near $2.60 and has declined by 4% on the day, mimicking the broader crypto market retracement.
XRP/USDT daily chart
If XRP bounces off the upper boundary of a descending channel, it could retest the $2.60 resistance. A move above $2.60 could propel the remittance-based token to tackle its seven-year high resistance at $3.40. However, it must first clear key hurdles near $2.78 and $2.95 for such a move to materialize.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are attempting to cross below their respective moving average lines, indicating a weakening bullish momentum.
A daily candlestick close below the upper boundary of the descending channel will invalidate the thesis and potentially send XRP to find support at $1.96.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.