About 16% of its value was lost in October 2024 alone. XRP, Ripple’s native coin, came under massive attack this month. A recent appeal by the US Securities and Exchange Commission (SEC) in its ongoing actions against Ripple is fueling this situation price drop. Investors are wondering about the future of XRP as the legal question of whether it qualifies as a security hangs over the token like a obscure cloud.

Hope is mixed with skepticism as some analysts are almost bullish about the economic recovery given the dire forecast. Indeed, whale activity has been detected based on recent monitoring data from the Whale Alert platform huge cryptocurrency transfers.

🚨 30,380,000 #XRP ($15,993,939) transferred from unknown wallet to #Namehttps://t.co/NWSMKsIZJy

— Whale Alert (@whale_alert) October 3, 2024

Over the last 24 hours, 153 million XRP tokens were transferred and some of them undoubtedly found their way to exchanges. This has sparked some interest from traders in the future prospects for XRP, although the future of the token largely depends on the outcome of the legal proceedings with the SEC.

🚨 19,220,000 #XRP ($10,122,908) transferred from unknown wallet to #Bitstamphttps://t.co/GNObmOWzeZ

— Whale Alert (@whale_alert) October 3, 2024

Whales migrate XRP

Whale Alert reports that the whale wallet transferred over 30 million XRP tokens worth almost $16 million to the Bitso exchange. Such whale activity is usually considered a sign of a situation where traders are either preparing for greater losses or looking for profits. It’s anyone’s guess whether this wave of whale activity bodes well for the next XRP drop SEC Appeal.

🚨 🚨 🚨 104 384 848 #XRP ($54,662,653) transferred from unknown wallet to unknown recent wallethttps://t.co/ggwKSmRD9z

— Whale Alert (@whale_alert) October 3, 2024

Despite these significant token transfers, there are those who predict that XRP could experience a rebound. Jack The Rippler, a renowned cryptocurrency analyst, identified a historic descending triangle pattern in the monthly XRP chart. This pattern suggests that the token may be consolidating ahead of a potential breakout. In 2016 and 2020, comparable patterns resulted in keen gains after breaking resistance levels, providing optimism for those who expect additional growth in the XRP price.

XRP down in the last week. Source: Coingecko

Is it possible to break through?

XRP is currently in a arduous moment from a technical point of view. Its Relative Strength Index (RSI) is currently at 39, suggesting bearish momentum. Typically, an RSI below 50 indicates that an asset is under pressure, and if it falls below 30, it may enter oversold territory.

However, analysis by Jack The Rippler shows that XRP may break its current trend as it has occurred after similar consolidation in the past. Analysts expect that in such a case, this token may continue chasing the next resistance level.

Meanwhile, however, the SEC lawsuit is the elephant in the room and cannot be ignored either. The outcome of this court battle will have a significant impact on XRP’s future activities. If the SEC can show that Ripple’s secondary sale of XRP violated U.S. securities laws, the token could suffer greater losses; some analysts predict a keen drop from its current price to $0.11.

Featured photo from CPO magazine, chart from TradingView