XRP Holders Lose Altcoin Holdings as Ripple Struggles to Counter Resistance at $0.55

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

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

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

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

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

XRP price and profits/losses made by the network

• Social dominance, a metric used to identify XRP The share of cryptocurrency discussions has remained virtually unchanged over the past ten days. At the time of writing, the indicator is indicating 1.46% on May 19th and 1.51% on May 28th.

XRP price and social dominance

Ripple holders await a ruling in the SEC lawsuit against Ripple. 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 selling unregistered securities.

Technical Analysis: XRP Expects Gain of Nearly 7%.

Ripple is in an uptrend that started on April 18th. Since altcoins it consistently formed higher highs and higher lows. XRP is attempting to flip the $0.5310 resistance level into support. 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 gains by nearly 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 underlying positive momentum.

The relative strength index (RSI) momentum indicator is reporting 50.23, above the neutral level, suggesting bullish momentum in the altcoin.

XRP/USDT daily chart

In the event of a correction, XRP could wipe out 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.

Frequently asked questions about the SEC lawsuit against Ripple

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 US 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. While the judge ruled that programmatic sales are not considered securities, sales of XRP tokens to institutional investors are in fact investment contracts. In this latest case, Ripple has violated US securities law and will have to continue to pursue the approximately $729 million it received under written contracts.

The ruling offers a partial victory for both Ripple and the SEC, depending on what you look at. Ripple benefits greatly from the fact that programmatic sales are not considered securities, and this could bode well for the cryptocurrency industry in general since most of the assets targeted by the SEC crackdown are managed by decentralized entities that have sold their tokens mainly to retail investors via exchange platforms, experts say. However, the ruling doesn’t do much to answer the key question of what makes a digital asset a security, so it’s not yet clear whether this lawsuit will set a precedent for other open cases involving dozens of digital assets. Topics such as what is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional sales and programmatic sales will likely persist.

The SEC has intensified its enforcement actions against the blockchain and digital assets sector, filing charges against platforms such as Coinbase or Binance for allegedly violating US securities law. The SEC states that most cryptocurrencies are securities and therefore subject to strict regulation. While defendants can use parts of the Ripple ruling in their favor, the SEC can also find reasons to maintain its current regulatory strategy through enforcement.

The court’s decision is a partial summary judgment. The sentence can be appealed once the final sentence has been issued or if the judge allows it before then. The case is in a preliminary stage, where both Ripple and the SEC still have a chance to reach a settlement.

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