NEW DELHI (CoinChapter.com) — XRP price underwent a minor correction on May 16 after the token shot up above $0.5 on May 15 following a 4% price spike. Several factors were responsible for why the XRP price was up in the past 24 hours.
A spike in whale activity, anticipation of a ruling in the Ripple-SEC lawsuit likely helped the XRP price surge, and bullish market sentiment following the release of the US CPI data. The Ripple token price rose over 5% since May 15 to reach a daily high near $0.52.
The Ripple vs. SEC lawsuit has advanced, with Ripple filing to seal documents on May 13. CFO Jonathan Bilich supported the motion to seal the documents regarding discounts offered on XRP to institutional buyers.
Whale Accumulation Could Be Why XRP Price Is Up Today
Independent crypto analyst Ali Martinez noted in an X post that XRP whales accumulated over 100 million tokens in the first two weeks of May, totaling around $55 million.
Furthermore, Santiment data shows whales holding between 1 million and 10 million XRP added 60 million tokens to their holdings since late April.
Market participants usually consider whale accumulation a bullish indicator for any asset, as it reflects confidence from large investors who are likely privy to more extensive market insights.
Moreover, the substantial accumulation by whales suggests that these large investors anticipate a positive outcome in the Ripple-SEC lawsuit. As the case progresses, with both sides having filed their briefs and replies, the market is bracing for a potential ruling.
The optimism surrounding a favorable outcome for Ripple could be what is motivating the whales to increase their holdings.
XRP Price Moving Inside Bullish Setup
Additionally, the Ripple token has formed a bullish technical setup called the ‘Ascending Triangle.‘
Historically, a horizontal trendline connecting swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Moreover, the volume helps determine whether a breakout is strong. Under ideal conditions, buyers would enter the market as the trendlines close the gap.
As a result, the token’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the bullish pattern pans out, XRP price has a theoretical price target near $1.44, a spike of 177% from current levels.
