Recent developments surrounding Ripple have raised interest in possible insider trading with XRP, as well as questions about the token's future.
Possible Insider Trading with XRP
According to recent research by Santiment, large XRP holders increased their balances by about 6.5% in the two months leading up to the announcement that the SEC had dropped its appeal against Ripple. During this period, there was also a sixfold increase in unique wallet activity on the Ripple network, contrasting with user outflows on other blockchains. However, it's premature to claim insider trading, as the news was widely anticipated and might have been priced in since Donald Trump's election victory last November.
Is It Time to Short XRP?
Some believe the XRP token might be overvalued, given that many catalysts for its positive price movement have already happened. Ripple effectively won the lawsuit against the SEC, although they still face a hefty fine. However, the Commission won't push the case further, which is a positive development. Heightened social media activity around XRP has led some analysts to believe it might be a good opportunity for contrarian investors to consider shorting the cryptocurrency.
Potential Drop in XRP Price
Ali Martinez, a well-known crypto analyst, recently expressed a controversial opinion on the XRP price, predicting a substantial crash. According to him, the recent pump and dump in XRP has essentially created a popular technical pattern known as head and shoulders. If it unfolds, this could result in a 50% drop in the asset's price, bringing it down to $1.25.
Events surrounding Ripple continue to spark debate and investor interest. The future of XRP remains uncertain, as analysts offer conflicting opinions on its value and prospects.
