XRP’s sharp drop from its peak has not stopped large holders from accumulating, a split that highlights how much of the token’s value now hinges on regulatory progress rather than price momentum alone.
XRP Whale Buying Bets on Regulatory Clarity
The token is still about 69% below its all-time high, trading near $1.09 on July 25, but the latest price action shows a market trying to reconcile deep technical weakness with a growing bet that Washington will eventually deliver a more workable framework for U.S. crypto assets. That tension matters because XRP is not just a retail-driven trade: it is increasingly being treated as a proxy for the regulatory future of Ripple-linked payments and for whether institutional money is willing to step into a token that has spent years under a cloud.
Whale accumulation is the key new signal. Large holders have added roughly 600 million XRP even as the token has drifted near the lower end of its recent range. In a market where the 50-day moving average now sits slightly above spot and the 200-day moving average is well higher, that buying suggests some investors are positioning for a policy-led rerating rather than waiting for a clean technical breakout. The Relative Strength Index near 47 and a still-muted MACD indicate XRP is neither overbought nor in a strong trend reversal, leaving it vulnerable if the regulatory catalyst disappoints.
That makes the upcoming CLARITY Act hearing the central event for investors. According to market chatter, the legislation’s progress has already lifted XRP and improved sentiment around the token’s outlook, while references to institutional participation, including Goldman Sachs, have reinforced the idea that clearer rules could broaden access to XRP-linked exposure. For holders, the logic is straightforward: if the U.S. moves closer to defining how digital assets are classified and traded, the discount embedded in XRP’s valuation could narrow. If it does not, whales may simply be providing liquidity for a market still struggling to justify higher prices.
The broader market backdrop is less forgiving. XRP’s recent bounce comes after months of volatility across major cryptocurrencies, and the token’s one-day range remains tight, with price hovering just above its lower Bollinger Band. That leaves the market susceptible to both headline-driven spikes and abrupt reversals. Bulls argue that the combination of legislative momentum and large-holder buying points to early accumulation ahead of a policy inflection. Bears counter that without concrete legal clarity, whale demand may prove tactical rather than transformational.
For investors, the important question is not whether XRP can rally on sentiment alone, but whether policy can convert speculative demand into a durable valuation reset. The CLARITY Act hearing will test that thesis. Until then, XRP remains a high-beta bet on regulation, with whales apparently willing to buy the uncertainty before the market gets an answer.
| Entity | Gains | Losses |
|---|---|---|
| XRP whales | ▲Potential policy upside | ▼Near-term downside if hearing disappoints |
| XRP bulls | ▲Rerating from clarity | ▼Weak trend if momentum fades |
| Regulators/lawmakers | ▲Framework momentum | ▼Pressure to avoid ambiguity |
| Shorts/cautious traders | ▲— | ▼Risk of squeeze on positive headlines |
