XRP holders lose interest, shed holdings as Ripple and SEC seal lawsuit proceedings
- XRP traders have realized more than $31 million in losses over the last week.
- Traders are shedding their XRP holdings and on-chain activity has dropped since the altcoin hit its year-to-date high on March 11.
- Technical indicators suggest XRP price is at risk of further decline as holders anticipate developments in the SEC vs. Ripple lawsuit.
XRP price broadly consolidates above $0.60 on Thursday as The Securities and Exchange Commission (SEC) is poised to file its remedies-related opening brief on Friday. According to Ripple and SEC’s agreement, the proceedings will remain sealed from public view and this has increased XRP holders’ anticipation of the developments in the legal battle.
On-chain metrics signal a loss of interest in XRP while the altcoin faces a price correction.
Daily digest market movers: XRP on-chain metrics support recent losses
- XRP has noted a considerable decrease in on-chain activity, as measured by the Active Addresses and Whale Transaction Count of those transfers valued at $100,000 and higher. XRP price hit its year-to-date peak on March 11 and since then these two metrics have been declining steadily, according to Santiment’s on-chain data.
- This occurs at the same time as XRP’s price has corrected. The altcoin lost nearly 20% since March 11 together with the drop in activity.
 [11.00.54, 21 Mar, 2024]-638466026308330048.png)
Active Addresses and Whale Transaction Count. Source: Santiment
- Another key on-chain metric, the Network Realized Profit/Loss, signals XRP holders have realized over $31 million in losses between March 15 and 21. Since XRP price is in a downward trend, this implies there is likely a capitulation from investors.
 [10.58.40, 21 Mar, 2024]-638466026619057860.png)
Network Realized Profit/Loss. Source: Santiment
- The SEC vs. Ripple lawsuit will continue as planned, with a key briefing from the US regulator on March 22 under seal.
Technical analysis: XRP price could see further decline
XRP price briefly dropped below the key psychological support at $0.60 on Thursday, and recovered to $0.6056. The altcoin has repeatedly tested the $0.60 support and rebounded from it, signaling its importance for the altcoin. A daily candlestick close below the $0.60 level could reinforce the bearish thesis and open the gates for a further correction in XRP Ledger’s native token.
If selling pressure gains momentum, XRP price is likely to sweep the low at $0.5464, the 23.6% Fibonacci retracement level of the asset’s climb to its year-to-date peak. Once the altcoin collects liquidity at this level, it could see a rebound and target $0.6886, the 78.6% Fib. retracement level.
The red bars below the zero line on the Moving Average Convergence/Divergence indicator confirm the negative momentum. Meanwhile, the Relative Strength Index (RSI) has dropped below the neutral zone, at 48.93, at the time of writing.
XRP/USDT 1-day chart
XRP price could invalidate the bearish thesis with a daily candlestick close above the $0.6147 (50% Fib. retracement level). In the upside scenario, the altcoin faces resistance at the $0.6500 level, since it acted as resistance throughout January.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
