XRP price stabilizes as whale accumulation hints at potential recovery initiating soon

• XRP price is trading at $0.48, closing in on invalidating the critical support line of $0.47.
• Ripple CTO stated that SEC did not show favoritism but corruption by clearing Ethereum from being a security.
• Ripple proponent John Deaton also called out the US House FSC for being ineffective in its oversight of the SEC Chair.

XRP price was in the red over the last couple of days but could be seeing some recovery in the coming days. The reason behind this goes back to not only the positive development in the space concerning Ripple but also XRP whales accumulating tokens.

Daily Digest: Ripple CTO calls SEC corrupt, whales increase holdings

Ripple Chief Technology Officer (CTO) David Schwartz took to X, formerly Twitter, to counter the Cardano founder Charles Hoskinson. Earlier this week, during an AMA session on the social media platform, Hoskinson spoke about the conspiracy of ETHgate, according to which Ethereum has been given a free pass by the Securities and Exchange Commission (SEC).

This conspiracy theory emerged because the SEC maintained its stance that ETH was not security, while has targeted many other tokens, such as XRP, to be considered as such. Many called this corruption, but Charles Hoskinson spoke against the same, saying,

“None of that activity presupposes corruption, just favoritism…this is how the internet works, and it can’t be fixed now

However, Schwartz did not seem to agree with this statement as he tweeted,

“I would argue that a government actor showing favoritism aligned with the personal interests of themselves and their friends is corruption.

Thus, Ripple enthusiasts and team members do not seem to be in the mood to spare the SEC either directly or indirectly.

Meanwhile, Ripple whale addresses, particularly the cohort holding between 1 million and 10 million XRP, have added over 90 million XRP tokens worth about $43 million over the past two weeks. Their total holding rose from 3.75 billion XRP to 3.84 billion XRP as of today.

Whales have been fairly influential in the price action since December 2022. Their accumulation and selling have resulted in an increase and decrease in XRP price, respectively.

Ripple whale accumulation

This is a bullish sign as it could act as a trigger for the XRP price to initiate recovery since it is in a decline.

Ripple Legal Officer on regulation

Ripple and its long-standing animosity with the SEC is a story not unknown to anyone in the crypto space; however, throughout the lawsuit, the XRP parent company maintained its stance on the fact that the market needed regulations. The lack of the same is one of the biggest reasons why the SEC continues to practice regulation by enforcement, which is driving away companies to other accepting countries such as Europe.

Ripple Chief Legal Officer, Stuart Alderoty, reiterated the need for these regulations and their clarity during the University Blockchain Research Initiative (UBRI) conducted by Ripple this week. He also recognized and complemented the impact UBRI has had on driving academic research related to blockchain and digital assets.

Technical Analysis: XRP price continues to decline

XRP price trades at $0.48 at the time of writing, hovering just above the crucial support level of $0.47. Down by 11% in the last nine days, the sentiment around the cryptocurrency is heavily bearish. 

A fall below this level would completely invalidate the 13.7% gains noted by the altcoin in the second half of September, which took the XRP price up to $0.54.

XRP/USD 1-day chart

Nevertheless, if the altcoin bounces off the support line at $0.47 and reclaims the $0.50 resistance line as a support floor, further recovery can be expected. Breaching the 50-day and 200-day Exponential Moving Average (EMA) confluence at $0.52 would invalidate the bearish thesis, setting XRP price up for climbing back to $0.54.