XRP price is stuck within a narrow consolidation range, but an explosive rally might be brewing after whales purchased 200M Ripple tokens in the last five days. The purchase comes after a recent report disclosed that 23% of US investors hold Ripple, signalling high market confidence despite regulatory uncertainty from the SEC lawsuit.
XRP trades at $2.20 today, May 3, but with 71% of bullish Binance traders, how high with this altcoin rally go, and are large purchases and adoption enough to see it outperform the broader crypto market? Let’s find out.
XRP Price May Explode as US Investors, Whales, Back Ripple
The price of XRP is at a pivotal point after a recent report revealed that 23% of US crypto investors have invested in Ripple. Meanwhile, this altcoin has a 67% awareness rate, suggesting that its popularity is notably high. According to the National Cryptocurrency Association, XRP is the 6th most popular crypto in the US.
US Crypto Popularity
This data indicates that despite the SEC vs. Ripple lawsuit not being formally closed, investor confidence in the blockchain and its native token remains notably high. Hence, once the SEC releases an official statement on the settlement, 67% of US traders who are aware of Ripple may flock to the altcoin, and spark a massive price gain.
Meanwhile, whale activity hints that large investors are leaning towards a bullish XRP price prediction in May after acquiring a staggering 200M tokens this week alone. Per Santiment data, those holding between 10M and 100M Ripple tokens have increased their holdings from 7.59 billion to 7.79 billion
XRP Whale Supply Balance
The high rate of adoption by US investors and the whale accumulation are bullish indicators and may lead to an explosive rally for the XRP price. Moreover, the technical outlook supports this positive narrative as the altcoin eyes fresh all-time highs.
Ripple Technical Analysis As it Nears Breakout Cycle
Popular analyst VipRoseTr has shared a bullish forecast on XRP price, stating that it is nearing a breakout cycle. In her analysis, she noted that this altcoin was entering a long-awaited breakout from resistance that may spark a 2x surge in market capitalisation.
The analyst identified a descending trendline on Ripple’s weekly chart, noting that with the recent formation of higher highs, this altcoin was on the verge of breaking past a major resistance hurdle. If this breakout occurs at $2.58, XRP will form the next bullish leg that will push it to as high as $3.87.
XRP Price Chart
Considering this bullish XRP price analysis and the recent whale acquisitions, the altcoin has the potential to make explosive gains. However, such gains will depend on the rate at which new traders acquire Ripple, as statistics reveal that it lags behind Ethereum, Solana and Dogecoin in terms of acquisitions in the US.
The collapse of the MANTRA (OM) token has left investors reeling, with many facing significant losses. As analysts comb through the causes of the collapse, many questions remain.
BeInCrypto consulted industry experts to identify five critical red flags behind MANTRA’s downfall and reveal strategies investors can adopt to steer clear of similar pitfalls in the future.
MANTRA (OM) Crash: What Investors Missed and How to Avoid Future Losses
On April 13, BeInCrypto broke the news of OM’s 90% crash. The collapse raised several concerns, with investors accusing the team of orchestrating a pump-and-dump scheme. Experts believe that there were many early signs of trouble.
In addition, the project adopted an inflationary tokenomic model with an uncapped supply, replacing the previous hard cap. As part of this transition, the total token supply was also increased to 1.7 billion.
However, the move wasn’t without drawbacks. According to Jean Rausis, co-founder of SMARDEX, tokenomics was a point of concern in the OM collapse.
“The project doubled its token supply to 1.77 billion in 2024 and shifted to an inflationary model, which diluted its original holders. Complex vesting favored insiders, while low circulating supply and massive FDV fueled hype and price manipulation,” Jean Rausis told BeInCrypto.
Moreover, the team’s control over the OM supply also raised centralization concerns. Experts believe this was also a factor that could have led to the alleged price manipulation.
“About 90% of OM tokens were held by the team, indicating a high level of centralization that could potentially lead to manipulation. The team also maintained control over governance, which undermined the project’s decentralized nature,” said Phil Fogel, co-founder of Cork.
Phil Fogel acknowledged that a concentrated token supply isn’t always a red flag. However, it’s crucial for investors to know who holds large amounts, their lock-up terms, and whether their involvement aligns with the project’s decentralization goals.
Moreover, Ming Wu, the founder of RabbitX, also argued that analyzing this data is essential to uncover any potential risks that could undermine the project in the long term.
“Tools like bubble maps can help identify potential risks related to token distribution,” Wu advised.
2. OM Price Action
2025 has been marked as the year of significant market volatility. The broader macroeconomic pressures have weighed heavily on the market, with the majority of the coins experiencing steep losses. Yet, OM’s price action was relatively stable until the latest crash.
OM vs. TOTAL Market Performance. Source: TradingView
“The biggest red flag was simply the price action. The whole market was going down, and nobody cared about MANTRA, and yet its token price somehow kept pumping in unnatural patterns – pump, flat, pump, flat again,” Jean Rausis disclosed.
He added that this was a clear sign of a potential issue or problem with the project. Nevertheless, he noted that identifying the differentiating price action would require some technical analysis know-how. Thus, investors lacking the knowledge would have easily missed it.
Despite this, Rausis highlighted that even the untrained eye could find other signs that something was off, ultimately leading to the crash.
Strategies to Protect Yourself
While investors remained optimistic about OM’s resilience amid a market downturn, this ended up costing them millions. Eric He, LBank’s Community Angel Officer, and Risk Control Adviser emphasized the importance of proactive risk management to avoid OM-style collapses.
“First, diversification is key—spreading capital across projects limits single-token exposure. Stop-loss triggers (e.g., 10-20% below buy price) can automate damage control in volatile conditions,” Eric shared with BeInCrypto.
Ming Wu had a similar perspective, emphasizing the importance of avoiding over-allocation to a single token. The executive explained that a diversified investment strategy helps mitigate risk and enhances overall portfolio stability.
“Investors can use perpetual futures as a risk management tool to hedge against potential price declines in their holdings,” Wu remarked.
Meanwhile, Phil Fogel advised focusing on a token’s liquidity. Key factors include the float size, price sensitivity to sell orders, and who can significantly impact the market.
3. Project Fundamentals
Experts also highlighted major discrepancies in MANTRA’s TVL. Eric He pointed out a significant gap between the token’s fully diluted valuation (FDV) and the TVL. OM’s FDV reached $9.5 billion, while its TVL was only $13 million, indicating a potential overvaluation.
“A $9.5 billion valuation against $13 million TVL, screamed instability,” Forest Bai, co-founder of Foresight Ventures, stated.
Notably, several issues were also raised regarding the airdrop. Jean Rausis called the airdrop a “mess.” He cited many issues, including delays, frequent changes to eligibility rules, and the disqualification of half the participants. Meanwhile, suspected bots were not removed.
“The airdrop disproportionately favored insiders while excluding genuine supporters, reflecting a lack of fairness,” Phil Fogel reiterated.
The criticism expanded further as Fogel pointed out the team’s alleged associations with questionable entities and ties to questionable initial coin offerings (ICOs), raising doubts about the project’s credibility. Eric He also suggested that MANTRA was allegedly tied to gambling platforms in the past.
Strategies to Protect Yourself
Forest Bai underscored the importance of verifying the project team’s credentials, reviewing the project roadmap, and monitoring on-chain activity to ensure transparency. He also advised investors to assess community engagement and regulatory compliance to gauge the project’s long-term viability.
Ming Wu also stressed distinguishing between real growth and artificially inflated metrics.
“It’s important to differentiate real growth from activity that’s artificially inflated through incentives or airdrops, unsustainable tactics like ‘selling a dollar for 90 cents’ may generate short-term metrics but don’t reflect actual engagement,” Wu informed BeInCrypto.
Finally, Wu recommended researching the background of the project’s team members to uncover any history of fraudulent activity or involvement in questionable ventures. This would ensure that investors are well-informed before committing to any project.
4. Whale Movements
As BeInCrypto reported earlier, before the crash, a whale wallet reportedly associated with the MANTRA team deposited 3.9 million OM tokens into the OKX exchange. Experts highlighted that this wasn’t an isolated incident.
“Large OM transfers (43.6 million tokens, ~$227 million) to exchanges days prior were a major warning of potential sell-offs,” Forest Bai conveyed to BeInCrypto.
Ming Wu also explained that investors should pay close attention to such large transfers, which often act as warning signals. Moreover, analysts at CryptoQuant also outlined what investors should look out for.
“OM transfers into exchanges amounted to as much as $35 million in just an hour. This represented an alert sign as: Transfers into exchanges are below $8 million in a typical hour (excluding transfers into Binance, which are typically large given the size of the exchange). Transfers into exchanges represented more than a third of the total OM transferred, which indicates a high transfer volume into exchanges,” CryptoQuant informed BeInCrypto.
Strategies to Protect Yourself
CryptoQuant stated that investors need to monitor the flows of any token into exchanges, as it could indicate increasing price volatility in the near future.
Meanwhile, Risk Control Adviser Eric He outlined four strategies to stay up-to-date when it comes to large transfers.
Chain Sleuthing: Tools like Arkham and Nansen allow investors to track large transfers and monitor wallet activity.
Set Alerts: Platforms like Etherscan and Glassnode notify investors of unusual market movements.
Track Exchange Flows: Users need to track large flows into centralized exchanges.
Check Lockups: Dune Analytics helps investors determine if team tokens are being released earlier than expected.
He also recommended focusing on the market structure.
“OM’s crash proved market depth is non-negotiable: Kaiko data showed 1% order book depth collapsed 74% before the fall. Always check liquidity metrics on platforms like Kaiko; if 1% depth is below $500,000, that’s a red flag,” Eric revealed to BeInCrypto.
Additionally, Phil Fogel underlined the importance of monitoring platforms like X (formerly Twitter) for any rumors or discussions about possible dumps. He stressed the need to analyze liquidity to assess whether a token can handle sell pressure without causing a significant price drop.
Interestingly, experts were slightly divided on how CEXs contributed to OM’s crash. Forest Bai claimed that CEX liquidations during low-liquidity hours worsened the crash by triggering cascading sell-offs. Eric He corroborated this sentiment.
“CEX liquidations played a major role in the OM crash, acting as an accelerant. With thin liquidity—1% depth falling from $600,000 to $147,000—forced closures triggered cascading liquidations. Over $74.7 million was wiped in 24 hours,” he mentioned.
“Analyzing the open interest in the OM derivatives market reveals that it was less than 0.1% of OM’s market capitalization. However, what’s particularly interesting is that during the market collapse, open interest in OM derivatives actually increased by 90%,” Wu expressed to BeInCrypto.
According to the executive, this challenges the idea that liquidations or forced closures caused the price drop. Instead, it indicates that traders and investors increased their short positions as the price fell.
Strategies to Protect Yourself
While the involvement of CEXs remains debatable, the experts did address the key point of investor protection.
“Investors can limit leverage to avoid forced liquidations, choose platforms with transparent risk policies, monitor open interest for liquidation risks, and hold tokens in self-custody wallets to reduce CEX exposure,” Forest Bai recommended.
Eric He also advised that investors should mitigate risks by adjusting leverage dynamically based on volatility. If tools like ATR or Bollinger Bands signal turbulence, exposure should be reduced.
The MANTRA (OM) collapse is a powerful reminder of the importance of due diligence and risk management in cryptocurrency investments. Investors can minimize the risk of falling into similar traps by carefully assessing tokenomics, monitoring on-chain data, and diversifying investments.
With expert insights, these strategies will help guide investors toward smarter, more secure decisions in the crypto market.
Bitcoin’s price recently hit a monthly high, surpassing $87,000 and marking a notable rise for the crypto king. This rally is attributed to favorable macroeconomic conditions and the increased conviction of key investors.
Despite this growth, long-term holders’ profits have dropped to a two-year low, signaling a more cautious outlook among certain market participants.
Bitcoin Whales Remain Bullish
Whale and shark addresses, which hold between 10 and 10,000 BTC, have been actively accumulating Bitcoin at lower price levels. Over the past month, these addresses have purchased approximately 53,652 BTC, worth nearly $4.7 billion. This buying spree indicates that large investors are taking advantage of Bitcoin’s recent dip, believing in the asset’s long-term potential.
The accumulation by these large investors highlights confidence in Bitcoin’s growth. While some market participants might have been uncertain during Bitcoin’s recent price fluctuations, these major holders appear to be positioning themselves for future gains.
Bitcoin Whale and Shark Holding. Source: Santiment
The MVRV Long/Short Difference indicator, which tracks the difference between short-term holders (STHs) and long-term holders (LTHs) in terms of realized profits, is currently at a two-year low. This indicates that STHs are dominating the market, which reflects the whale accumulation. However, the dominance of short-term holders in profits often signals that the market is ripe for selling, which could result in downward pressure on Bitcoin’s price.
With the MVRV indicator flipping below the zero line, there’s a risk that Bitcoin’s price could be negatively impacted if STHs decide to cash out. While whales continue to accumulate, the growing influence of STHs could lead to increased volatility, especially if the market sentiment shifts.
Bitcoin is currently trading at $87,463, holding above the crucial support level of $86,822. The last time Bitcoin failed to secure this support, the price fell significantly. However, if Bitcoin can maintain support at $86,822, it could move toward the next resistance level at $89,800.
Breaking through the $90,000 mark is a key milestone for Bitcoin. If Bitcoin can reclaim $90,000 as support, it will likely continue its upward trend. This psychological level is crucial for bolstering investor confidence, which would drive further price increases.
On the downside, if Bitcoin faces bearish momentum, it could struggle to hold support at $86,822. A drop through this level would likely lead to a further decline, with the next support level at $85,204. If this fails, Bitcoin could slide to $82,503, erasing a significant portion of the recent gains.
A new crypto market structure discussion draft has been released by key U.S. House committees, marking a new phase in digital asset regulation.
The U.S. House Financial Services Committee and House Agriculture Committee published the draft on Monday, May 5, 2025, aiming to create a more structured and transparent regulatory environment for cryptocurrencies and related markets.
Clear Roles for US SEC and CFTC Crypto Market Bill
The draft crypto market bill outlines a more distinct separation of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the proposed framework, the US SEC will regulate digital assets that are considered investment contracts. The CFTC will oversee digital commodities and their spot markets.
This approach addresses concerns raised during earlier debates over the Financial Innovation and Technology for the 21st Century Act (FIT21). Justin Slaughter of Paradigm commented on X, “Overall, this bill again would make the CFTC the dominant crypto regulator,” but he noted that the SEC would retain jurisdiction until decentralization is proven.
The bill also aims to prevent securities laws from applying to digital commodities traded on secondary markets unless those transactions grant the buyer rights to the issuer’s profits or assets.
Definitions for Decentralization and Network Maturity
A clear decentralization test is included in the crypto market bill draft. A project must not be under unilateral control by any single party. If any party holds more than 10% of the token supply, they must disclosed while the network remains centralized.
A blockchain is described as “mature” if it has utility, is fully developed, is open, follows transparent rules, and is not centrally controlled. These definitions aim to clarify when networks transition from securities oversight to commodities regulation.
Such criteria will assist developers and regulators in determining how a project should be governed during its lifecycle.
Investor Access and Regulatory Exemptions
The draft crypto market bill removes wealth and income restrictions for retail investors, opening the market to a wider public. This shift eliminates accredited investor checks and suitability standards that were seen as barriers to broader participation.
In addition, the draft outlines how digital commodity exchanges can register with the CFTC. It also introduces an optional early registration process for issuers and encourages joint rulemaking between the US SEC under the new chair Paul Atkins and CFTC.
For decentralized finance (DeFi), the draft proposes exemptions for protocols that are non-custodial and do not exercise discretionary control over users’ funds.
Stablecoin Definitions and Senate Challenges
Stablecoins are defined under the draft crypto market bill without being categorized as securities. However, a separate stablecoin bill has encountered resistance in the Senate. Nine Senate Democrats recently withdrew support, raising concerns over risks that new language might introduce.
Senator Chuck Schumer has voiced concerns over the operations of Tether, a major stablecoin issuer. These concerns have created uncertainty around the timeline for comprehensive stablecoin regulation.
Rep. French Hill stated, “Our discussion draft builds upon that work and provides much-needed regulatory clarity for the digital asset ecosystem.” Rep. Glenn Thompson added, “Regulatory clarity is long overdue in digital asset markets. This is the first step in advancing a comprehensive framework.”
A hearing titled “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century” is expected to further discuss the contents of the draft.
Push for Capital Gains Tax Reform on Crypto Market
Alongside the release of the draft crypto market bill, public discussion around tax treatment of crypto transactions has also increased. Industry voices have called for a change in how everyday crypto use is taxed ahead of the US SEC crypto roundtable.
Kristoph Jeffers wrote on X,
“Now let’s eliminate cap gains tax on Bitcoin so people can use it as currency.” Matthew Sigel, head of digital assets research at VanEck, replied, “Agreed. Hard to call it money if every purchase triggers a 1099.”
Sigel referred to the ongoing work in the Senate to introduce a de minimis exemption through the Lummis-Gillibrand bill, which would allow small crypto transactions to go untaxed. “A de minimis exemption for crypto transactions is long overdue, and already in the works,” he wrote.
