XRP, the digital asset closely tied to the payment protocol developed by Ripple Labs, finds itself trailing the broader market amid the ongoing legal battle between the company and the U.S. Securities and Exchange Commission (SEC). Despite the uncertainty surrounding the case, a closer look reveals a surprising trend – whale addresses have been steadily accumulating XRP, suggesting that whale investors may be grabbing the opportunity presented by the market volatility.

As of press, XRP trades at $0.516, down 0.27% in the last 24 hours and 0.17% in the last 7 days. Its market cap is $28.6 billion, ranking it 7th, while its 24-hour volume is $1.09 billion, an 8.15%  drop in 24 hours.

XRP Price Chart: CoinMarketCap

The SEC’s lawsuit against Ripple, alleging that XRP constitutes an unregistered security, has cast a long shadow over the cryptocurrency’s performance. As the case progresses, each development is scrutinized by investors, with potential implications for XRP’s future. Recently, Ripple’s Chief Financial Officer, Brendan Blumer, filed a declaration under penalty, seeking to seal certain key documents related to the SEC’s motion for judgment and remedies.

While the court’s ruling on the motion to seal is unlikely to directly impact the potential penalty for breaching U.S. securities laws, the fact that the SEC did not object suggests the request may be granted. Nonetheless, the looming deliberations on the penalty and the possibility of an injunction prohibiting Ripple from selling XRP to institutional investors remain significant concerns.

The SEC has proposed a staggering $2 billion penalty and an injunction that could hamper Ripple’s expansion plans in the U.S. following the recent ruling on the programmatic sales of XRP. Such an injunction could influence buyer demand for XRP, while a successful SEC appeal against the programmatic sales ruling may further complicate matters. All eyes on the final judgment.

Amidst the legal uncertainty, a remarkable trend has emerged. Whale addresses have been on an accumulation spree, procuring a staggering 540 million XRP worth over $270 million in the past five weeks and $110 million in the past two weeks, totaling around $55 million. This sustained accumulation by the whales suggests a belief in the long-term potential of XRP, despite the ongoing legal challenges.

XRP Technical Analysis

The weekly charts paint a bearish picture for XRP. Since March, when it formed the $0.78 high head of a head-and-shoulder pattern, XRP has displayed consistent bearish pressure. On the daily charts, XRP formed a complete head-and-shoulder pattern, signaling bearish momentum. On April 12th, XRP broke down past the pattern’s neckline, finding support at the $0.43 low.

XRPUSD Daily Chart: TradingView

Since then, the price has rallied to retest the broken neckline, now acting as resistance, and has faced rejection twice. Currently, XRP is trading within the $0.56 to $0.48 range. A break above the $0.569 neckline and resistance could signal a reversal of the trend, while a breakdown below $0.48 could lead to extended downward pressure, targeting the $0.44 support level.

As the legal battle between Ripple and the SEC continues to unfold, the crypto community closely watches each development, anticipating its potential impact on XRP’s future. While the technical indicators suggest a bearish outlook, the sustained accumulation by whales highlights the resilience of a dedicated investor base willing to weather the storm in anticipation of brighter days ahead.