- Ripple (XRP) holders have realized nearly $20 million in losses since May 18, while XRP’s social dominance remains steady at around 1.46%.
- Despite the legal battle with the SEC and recent market setbacks, technical indicators suggest a potential 7% price gain if XRP can convert the $0.5310 resistance level into support.
Ripple Holders Take Losses to the Tune of $20 Million
Since May 18, Ripple (XRP) holders have been offloading their holdings, resulting in nearly $20 million in realized losses. This consistent pattern of taking losses suggests a capitulation phase, which might pave the way for a potential recovery and an end to the consolidation period. Despite these losses, XRP’s social dominance remains steady at approximately 1.46%, indicating the altcoin’s continued relevance in market discussions.
XRP’s price has maintained a position above $0.52, although it experienced a slight 1% drop recently. Market participants are keenly awaiting the resolution of the ongoing lawsuit between the Securities and Exchange Commission (SEC) and Ripple. The legal proceedings, which began in 2020, have seen the SEC drop charges against Ripple executives Brad Garlinghouse and Chris Larsen but still seek $2 billion in fines for the alleged unregistered sale of securities.
XRP Price and Market Dynamics
The Network Realized Profit/Loss (NPL) metric, an on-chain indicator used to gauge the net profit or loss realized by holders on a given day, has highlighted the substantial losses XRP holders have faced over the past ten days. The realization of these losses, totaling $20 million, could be a sign of capitulation, a market phase where investors sell off assets at a loss, potentially setting the stage for price recovery.
Despite the recent setbacks, technical analysis suggests that XRP is in an uptrend that began on April 18. The altcoin has been forming higher highs and higher lows consistently, indicating a bullish trend. Currently, XRP is attempting to convert the $0.5310 resistance level into support. This level is significant as it represents the 50% Fibonacci retracement from the decline experienced between April 9 and April 13.
If XRP succeeds in flipping this resistance, it could extend its gains by nearly 7%, targeting the $0.5703 mark. The Moving Average Convergence Divergence (MACD) indicator, with its green histogram bars above the neutral line, supports this potential upside, reflecting underlying positive momentum. Additionally, the Relative Strength Index (RSI) reading of 50.23 suggests that bullish momentum is present.
However, should a correction occur, XRP might revisit the May 23 low of $0.5027 and find support around $0.4866, a level that has historically provided stability for over a month.
As the crypto community watches the developments in the SEC vs. Ripple lawsuit and the market dynamics unfold, XRP holders remain hopeful for a favorable outcome that could propel the altcoin out of its current consolidation phase and into a renewed rally.
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