Why Ripple Is Moving $109M in XRP as SEC Case Drags On

• Ripple has moved over 260M XRP tokens amid ongoing legal battles.
• Major XRP transfers have aligned with critical SEC lawsuit filings.
• XRP has encountered downward pressure following Ripple’s token shifts.

Ripple is stirring up waves again—this time, not just in its ongoing legal drama with the SEC . The crypto community is buzzing, not only because of Ripple’s battle in the courtroom but also due to a sudden flurry of massive XRP token transfers. 

Something bigger might be brewing, but for now, Ripple remains tight-lipped, leaving the market to guess what’s really going on. As investors watch closely, the substantial token shifts could have significant implications for the token’s market performance and Ripple’s position in the crypto landscape.

Ripple’s $109M XRP Move Triggers Market Jitters

On October 23, Ripple transferred 60 million XRP tokens to two separate wallets, following a massive move of 200 million XRP the previous day. Totaling over $109 million, these transactions have sparked speculation about their purpose. Notably, the wallets involved have been linked to previous transfers to Binance , suggesting potential sell-offs.

Such large movements can create selling pressure in the market, and the token’s price has reacted accordingly. The token dropped nearly 3%, hitting an intraday low of $0.5233. Trading volumes decreased by 30%, and futures open interest fell by 2%, indicating a cautious sentiment among traders.

XRP Funding Rate. Source: Santiment

Technical indicators also point to potential further declines. The Relative Strength Index (RSI) reads 43 and is trending downward, signaling negative momentum. Analysts warn that the token could test the critical support level of $0.50, risking an additional 7% drop. Currently, XRP sits at $0.5265 after facing a 1.5% decline compared to its price at the same time yesterday.

Ripple Juggles SEC Case & XRP Utility Boost

Ripple’s token transfers occur when the company is deeply engaged in legal proceedings with the SEC. The moves coincide with key deadlines and filings, including Chris Larsen’s Notice of Appearance and the upcoming Form C submission.

While some view the transfers as routine, others speculate that they may be related to funding legal expenses or strategic repositioning. Ripple has not violated any court processes and maintains that its actions are part of standard operations.

Despite the challenges, Ripple continues to pursue initiatives like developing its stablecoin, RLUSD, and expanding partnerships, aiming to enhance XRP’s utility and adoption.

On the Flipside

• Continuous large token sales by Ripple may erode investor confidence and contribute to price declines.
• The legal uncertainty surrounding the SEC lawsuit adds risk to XRP’s market outlook.
• Potential sell-offs have the potential to dilute the value of existing XRP holdings.

Why This Matters

Such large movements could affect XRP’s market supply and price stability, potentially impacting investor confidence. Understanding Ripple’s motives behind these transfers is crucial, as they may influence market dynamics and set examples for how crypto companies manage assets amid regulatory challenges. 

To learn more about the potential impact of new ETF filings on the token’s price, read here:
XRP Finds Momentum as New ETF Filings Set the Stage for a Pump

Curious about the factors affecting XRP’s price besides the lawsuit? This article explores them:
XRP Price Stalls Despite Ripple’s Wins—What’s Holding It Back?