The Role of Large Traders in XRP’s Price Movement: Insights from Kaiko
According to digital asset research firm Kaiko, data from crypto exchanges indicates that large traders in the US played a significant role in driving the buying demand of XRP following Ripple’s partial court victory over the SEC in July.
Upon analyzing the data, Kaiko discovered that the Korean exchange Upbit and the Seychelles-based exchange OKX experienced the strongest selling pressure for XRP in August. On the other hand, Coinbase, the leading crypto exchange in the US, observed higher levels of buying activity.
Kaiko’s analysis also revealed that XRP’s average trade size on Coinbase exceeded that of all other top ten altcoins (excluding Ethereum). This suggests that the buying demand for XRP on Coinbase was driven by large traders in the US, who regained access to the token following the court ruling in July. Interestingly, XRP remains the sixth-most-traded altcoin in the US by cumulative trade volume, while it takes the top spot on offshore markets.
The Ripple-SEC Lawsuit and XRP’s Price Movement
In late 2020, the SEC filed a lawsuit against Ripple, accusing the San Francisco payments company of selling XRP as an unregistered security. In July, District Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP did not constitute security offerings, contrary to the SEC’s claims. However, the judge agreed with the SEC’s argument that Ripple’s direct sales of XRP to institutional buyers did qualify as securities offerings.
Following the court ruling, the price of XRP surged from around $0.47 to a high of approximately $0.82 in July. However, the cryptocurrency has since lost most of those gains and is currently trading around $0.504.
Hot Take: The Influence of Large Traders and the Ongoing XRP Saga
As the Kaiko analysis suggests, large traders in the US have played a significant role in shaping the price movement of XRP. Their buying demand following Ripple’s court victory highlights the impact of legal developments on cryptocurrency markets. While XRP’s price has experienced volatility, it remains a popular choice on offshore exchanges. The ongoing Ripple-SEC saga continues to shape the narrative around XRP, making it a cryptocurrency to watch closely for potential future developments.
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