XRP Whales Are Selling Despite Ripple’s Breakthrough in SEC Lawsuit

Large XRP holders, commonly known as whales, have been offloading their tokens despite Ripple’s major advance in its legal battle with the U.S. Securities and Exchange Commission (SEC).

On-chain data from CoinMetrics and Messari shows modest declines in the total XRP supply held in wallets containing at least 1 million XRP.

This sell-off comes just weeks after Ripple scored a victory against the SEC, raising questions about why large investors are exiting the market rather than capitalizing on the legal breakthrough.

SEC Withdraws Lawsuit, but XRP Market Reaction Is Mixed

Ripple’s legal battle with the SEC began in December 2020, and there has been a major overhang in XRP’s price. The lawsuit accused Ripple of selling unregistered securities, causing an immediate drop of over 75%.

However, in March 2025, the SEC formally withdrew its charges against Ripple, effectively ending the years-long case. This decision followed court rulings that XRP is not a security when traded on secondary markets, dealing a significant blow to the regulator’s case.

XRP price has risen by over 8% since the lawsuit’s conclusion on March 19 but was losing its gains in the past 48 hours.

Macroeconomic Risks Cloud Investor Sentiment

One possible explanation for the XRP whale exodus is the growing uncertainty in global financial markets. Investors are confronting an increasingly cloudy economic outlook, driven by:

• Trade war fears: U.S. President Donald Trump announced that broad reciprocal tariffs and additional sector-specific tariffs would take effect on April 2. These measures pose a major risk for global trade and could impact corporate earnings.
• Stock market volatility: Investors are rotating out of risk assets, including cryptocurrencies, in favor of safer holdings such as gold and bonds.

With these economic headwinds, XRP whales may be hedging their positions, anticipating broader market weakness.

XRP Price Chart Forms Bearish Head and Shoulders Pattern

Beyond macro concerns, XRP’s technical setup is flashing warning signals. The price has formed a head and shoulders (H&S) pattern—a classic bearish reversal structure often preceding a sharp downward move.

The H&S pattern consists of three peaks:

• Left Shoulder: XRP surged to $2.50 in late 2024 before correcting.
• Head: The price hit a new high near $2.80, then retraced.
• Right Shoulder: A failed rally attempt around $2.50 marked the formation of the right shoulder.

The neckline, which connects the lows between the shoulders, is now at $2.10. A confirmed breakdown below this level could trigger a sharp sell-off toward $1.19, representing a 50% downside from current levels.

Adding to the bearish outlook:

• XRP has lost key support levels, including the 50-day EMA.
• Relative Strength Index (RSI) is weakening, suggesting fading bullish momentum.
• Trading volume is declining, a sign that buying interest is not strong enough to push prices higher.

Despite Ripple’s legal victory, XRP whales are actively selling, and macroeconomic uncertainty fuels risk-off sentiment. The bearish head-and-shoulders formation further supports the case for a potential correction, with XRP facing downside risk toward $1.19 in the coming weeks.