XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55


  • Ripple holders shed their XRP holdings and took $20 million in profits since May 18. 
  • XRP social dominance is nearly at the same level, at 1.46%. 
  • XRP sustained above $0.52 on Tuesday but is down 1% on the day. 

Ripple (XRP) holders have consistently realized losses on their XRP holdings on several occasions between May 18 and 28, as seen on the crypto intelligence tracker Santiment. The altcoin’s social dominance remains nearly unchanged, signaling XRP’s relevance among market participants. 

XRP holders await further developments in the Securities and Exchange Commission (SEC) vs. Ripple lawsuit. 

Daily Digest Market Movers: Ripple holders take losses to the tune of $20 million

  • The on-chain metric Network Realized Profit/Loss, used to identify the net profit/loss realized by holders of an asset on a given day, shows that XRP holders realized nearly $20 million in losses in the past ten days. 
  • Realization of losses on their XRP holdings, to the tune of $20 million, could amount to capitulation. This would mean the altcoin’s price could recover and break past consolidation. XRP price could resume its rally as holders continue to take losses. 

XRP

XRP price and Network Realized Profit/Loss 

  • Social dominance, a metric used to identify XRP’s share among discussions on crypto, has been nearly unchanged in the past ten days. The metric reads 1.46% on May 19 and 1.51% on May 28 at the time of writing. 

XRP social dominance

XRP price and social dominance 

Ripple holders await ruling in the SEC vs. Ripple lawsuit. The legal battle has dragged on since 2020, with the regulator dropping charges against executives Brad Garlinghouse and Chris Larsen, while asking for $2 billion in fines for unregistered securities sale. 

Technical analysis: XRP eyes nearly 7% gains

Ripple is in an uptrend that started on April 18. Since then the altcoin has formed higher highs and higher lows consistently. XRP is attempting to flip the $0.5310 resistance level to support. This level is important since it marks the 50% Fibonacci retracement of the decline from the April 9 peak of $0.6431 to the April 13 low of $0.4188. 

In its uptrend, XRP could extend gains by nearly 7% and tag $0.5703, the high on the May 6 and April 22 candlestick on the XRP/USDT 1-day chart. 

The Moving Average Convergence Divergence indicator with its green histogram bars above the neutral line, supports gains in XRP. It implies there is an underlying positive momentum. 

The momentum indicator Relative Strength Index (RSI) reads 50.23, above the neutral level, suggesting bullish momentum in the altcoin. 

XRP

XRP/USDT 1-day chart 

In the event of a correction, XRP could sweep liquidity at the May 23 low of $0.5027 and find support at $0.4866, a level that has acted as support for over a month. 

SEC vs Ripple lawsuit FAQs

It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.


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