Ripple on-chain activity spikes as XRP hovers around $0.43
|- Ripple active addresses climbed over 30% on Tuesday, per Santiment data.
- XRP traders await the end of the SEC’s lawsuit against Ripple, expected by July 31.
- Ripple investors realized over $144 million in losses in July.
- XRP hovers around $0.43 on Tuesday, adding nearly 1% value to the altcoin.
Ripple (XRP) on-chain activity shows an increase in activity among XRP traders. The number of active traders increased on Tuesday, meaning XRP is gaining relevance among market participants.
With Bitcoin back above $57,000, there is optimism among traders. Pro-crypto attorney Fred Rispoli told followers on X that the US Securities and Exchange Commission (SEC) vs. Ripple lawsuit is likely to end in July 2024. XRP traders are likely watching lawsuit developments and overall sentiment among crypto traders for clues on where the altcoin is headed.
Daily digest market movers: Ripple’s address activity rises, price recovers
- Ripple noted a 30% increase in active addresses in a single day, to 22,256 on Tuesday, as seen on Santiment.
- The rise in active addresses is indicative of an increase in the asset’s relevance among traders and higher demand across exchange platforms.
XRP active addresses
- The Network Realized Profit/Loss metric (NPL) from Santiment crypto intelligence tracker shows that traders have realized over $144 million in losses in July. This could be a sign of capitulation among traders, meaning the altcoin could soon recover from the recent decline in its price.
- The consistent negative spikes in the NPL metric indicate the losses incurred by XRP traders.
XRP NPL vs. price
- XRP traders are awaiting the end of the SEC vs. Ripple lawsuit, and per Attorney Fred Rispoli, this is likely before the end of July 2024. SEC vs. Ripple lawsuit ruling could come out as early as July 13, according to this pro-crypto attorney
Technical Analysis: XRP hovers around $0.43 on Tuesday
Ripple recovered from its decline to the 2024 low of $0.3823 hit on July 5. The altcoin is hovering close to $0.43 on Tuesday. The Relative Strength Index (RSI) on the XRP/USDT daily chart shows that Ripple is out of the oversold zone.
The RSI dipped under 30 on Friday, July 5. Since then, the RSI indicator has climbed to 37.89, signaling strength in Ripple’s uptrend.
XRP could climb to the upper boundary of the Fair Value Gap at $0.4611, as seen in the chart below. The altcoin faces resistance at the psychologically important $0.50 level.
XRP/USDT daily chart
A daily candlestick close below support at $0.4032 could invalidate the bullish thesis and send XRP to retest the July 5 low of $0.3823.
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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