XRP Price Drops During the Month but Why Are Whales Increasing Long?

February 8, 2024 11:39

Bitcoin Magazine on

Follow Bircoin Magazine on Google News

The XRP token is down 20% in 2024 and is now approaching its lowest daily close since October 18, 2023. Despite the challenging price performance, prominent traders at the OKX exchange strongly favor long-term leveraged positions.

Surprisingly, the funding rate for XRP futures has remained unchanged over the past month, raising questions about whether retail traders are mainly betting on a bearish price scenario.

Does negative news about Ripple and its founder affect XRP price?

Some of XRP's negative price performance can be attributed to adverse news surrounding Ripple, the company that launched the token and developed the Ripple Ledger database. On February 5, US District Court Judge Sarah Netburn accepted a request from the US Securities and Exchange Commission (SEC), requiring Ripple to present financial reports, including management contracts. “selling XRP to organizations”.

The ongoing dispute with the SEC began in December 2020 when the regulator accused Ripple and its operators of offering unregistered securities. However, in July 2023, a judge granted summary judgment in Ripple's favor, stating that XRP is only a security when sold to institutional investors. Even so, the latest decision indicates the SEC has built a case to justify its claim, leaving potential liabilities for Ripple.

#MyFirstFeedPost Hello Binance Square users!