Recently, XRP impressed with its highest transaction volume since September 2022. Traders are betting on XRP as they predict Ripple will win a lawsuit with the U.S. Securities and Exchange Commission (SEC), Kaiko reported.
A ruling in the lawsuit is expected in April, and it appears that the expectation of a ruling in Ripple’s favor is driving the current XRP price surge. In fact, since March 20, the price of XRP has increased by more than 40%, and its perpetual contract open interest (OI) has increased from $230 million to $471 million.
Interestingly, XRP trading activity is mostly concentrated on South Korean exchanges, with Upbit and Bithumb sometimes surpassing BTC and ETH in trading volume. XRP traded over $2 billion last week, indicating strong interest among traders in the cryptocurrency.
The question, however, is whether this rally is retail-driven or whale-driven. Whales are taking profits, according to trading data at quote levels, suggesting the rally was fueled by more retail activity. This means that smaller investors and traders are what drive the price of XRP.
*Tick: is a measure of the smallest upward or downward movement in a security’s price. It can also refer to the change in the price of a security from one transaction to the next.
Taking a closer look at the buying and selling transactions of Upbit and Bithumb, two of South Korea’s largest exchanges, reveals an interesting trend. Market sell orders outperformed market buy orders for orders above 200,000 XRP (approximately $95,000), suggesting that large investors and traders are taking profits at these levels. On the other hand, the buy/sell ratio for smaller orders is more balanced, suggesting that retail investors remain bullish on XRP.
Overall, the sentiment for XRP appears to be bullish, with traders betting on a positive outcome for Ripple in its legal battle with the SEC. While retail investors may be fueling the rally, it remains to be seen whether the uptrend will continue or if whales will return to the market and take control.
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according to Kyptos