XRP Holders Lose Altcoin Holdings, Ripple Struggles to Tackle Resistance at $0.55

• Ripple holders dumped their XRP holdings and made $20 million in profits since May 18.
• XRP’s social dominance is almost at the same level, at 1.46%.
• XRP held above $0.52 on Tuesday but is down 1% on the day.

Ripple (XRP) holders steadily made losses on their XRP holdings on multiple occasions between May 18 and 28, as shown by crypto intelligence tracker Santiment. The altcoin’s social dominance remains almost unchanged, signaling XRP’s relevance among market participants.

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

Daily Digest Market Movers: Ripple Holders Suffer $20 Million Losses

• The Network Realized Profit/Loss on-chain metric, used to identify the net profit/loss made by holders of an asset on a given day, shows that XRP holders have realized nearly $20 million in losses over the past ten days.
• Realization of losses on their XRP These assets, to the tune of $20 million, could amount to capitulation. This would mean that the altcoin price could recover and move beyond consolidation. XRP price may resume its rise as holders continue to suffer losses.

XRP price and profit/loss made on the network

• Social dominance, a metric used to identify XRP The share of crypto discussions has remained almost unchanged over the past ten days. The measure shows 1.46% on May 19 and 1.51% on May 28 at the time of writing.

XRP Price and Social Dominance

Ripple holders await the decision 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 seeking $2 billion in fines for unregistered securities sales.

Technical Analysis: XRP Eyes Gains of Nearly 7%

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

In its uptrend, XRP could extend its gains by almost 7% and reach $0.5703, the high of the May 6 and April 22 candlesticks on the XRP/USDT daily chart.

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

The Relative Strength Index (RSI) momentum indicator is reading 50.23, above the neutral level, suggesting bullish momentum for the altcoin.

XRP/USDT 1-day chart

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

SEC vs. Ripple Lawsuit FAQ

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

The United States Securities & Exchange Commission (SEC) has accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. Although the judge ruled that programmatic sales do not qualify as securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this latest case, Ripple violated US securities law and will have to continue to litigate for the approximately $729 million received under written contracts.

The decision delivers a partial victory to both Ripple and the SEC, depending on which one looks at. Ripple scores big win over programmatic sales not being considered securities, which could bode well for the broader crypto industry as most of the assets targeted by the SEC crackdown are managed by decentralized entities that sold their tokens primarily to retail investors. via exchange platforms, experts say. Still, the ruling does little to help answer the key question of what makes a digital asset a security. It is therefore not yet clear whether this lawsuit will set a precedent for other open cases affecting dozens of digital assets. Topics such as 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 intensified its enforcement actions against the blockchain and digital assets sector, filing complaints against platforms such as Coinbase or Binance for allegedly violating US securities law. The SEC says the majority of crypto assets are securities and therefore subject to strict regulation. While defendants may use parts of Ripple’s decision in their favor, the SEC may also find reasons to maintain its current regulatory-by-enforcement strategy.

The court’s decision is a partial summary judgment. The decision can be appealed once a final judgment is rendered or if the judge allows it before then. The case is in a pre-trial phase, in which Ripple and the SEC still have the opportunity to settle.

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