Following huge news shared by Ripple’s CEO that XRP vs SEC case is finally over, the XRP price pumped around 15% and is now trading above $2.50 level. As we correctly predicted in our article today, XRP price might break $2.45 only if there is a strong bullish catalyst and we definitely had it.
However, Ali Martinez reported that there are still no big buys from Ripple whales during this pump.
What you'll learn 👉
Leverage-Driven Rally Rather Than Whale Accumulation
Recent charts shared by Martinez reveal an interesting disconnect between XRP’s price movement and whale behavior. While XRP’s price showed a significant upward trend, whale holdings (addresses holding between 1 million to 1 billion XRP) remained relatively unchanged. This suggests that the recent price surge isn’t backed by large investors accumulating coins.
Watch out! @santimentfeed data shows no big buys from whales in this $XRP pump. However, open interest jumped by $200 million, hinting at a leverage-fueled surge. pic.twitter.com/qZPUtjhvLO
— Ali (@ali_charts) March 19, 2025
What’s really interesting is how the open interest chart suddenly jumped to 1.691B. Open interest went up by about $200 million, which tells us that people are using borrowed money to trade XRP rather than buying the actual coins. When a price rise happens mainly because of futures and margin trading instead of real purchases, it usually means the foundation isn’t very solid. This kind of trading can make the price growth less stable in the long run.
The lack of whale participation raises questions about the sustainability of this rally. Typically, when major positive news emerges, we’d expect to see large holders increasing their positions if they believed in long-term value appreciation. Their absence from the buying activity suggests a more cautious approach.
Read also: How High Could XRP Price Spike After the Ripple-SEC Lawsuit Ends?
Why Are Ripple Whales Sitting on the Sidelines?
Several factors might explain why large XRP holders haven’t jumped in to buy more during this pump:
The market may have already priced in the lawsuit outcome. The XRP community has been anticipating a positive resolution for months, and much of the bullish sentiment might have been reflected in XRP’s price beforehand. The partial victory last year when the SEC lost its “security classification” battle had already reduced uncertainty, making the final dismissal less surprising than it might seem.
Early buyers might be taking profits rather than accumulating more. Large investors who purchased XRP at lower levels could be selling into the pump instead of buying more. This would explain why the rally appears to be driven by retail and leveraged traders rather than fresh institutional demand.
JUST IN: 🇺🇸 Ripple CEO Brad Garlinghouse declares victory after SEC officially drops lawsuit.
— Watcher.Guru (@WatcherGuru) March 19, 2025
"This case has ended. It's over." pic.twitter.com/m2wSaCuZMV
The leverage-fueled nature of the pump might be deterring whales from making immediate moves. With the open interest spiking by $200 million, prudent large investors might prefer to wait for the price to stabilize before making long-term buy decisions. They understand that leverage-driven moves can lead to quick liquidations if prices reverse.
This situation creates potential risks for traders. Without substantial whale accumulation to support the price, a sudden reversal could trigger a cascade of liquidations of over-leveraged positions, potentially leading to increased volatility.
Traders should exercise caution in this environment. Watching for signs of whale accumulation would be a key indicator of a more sustainable uptrend. Keeping an eye on open interest is important because it can warn you about possible liquidations if traders using leverage start losing their positions.
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