Here’s what XRP holders can do now if the SEC Ripple lawsuit intensifies

Interestingly, the future of cryptocurrency and blockchain technology could be decided by a lawsuit filed between SEC-Ripple in late 2020.

Debate on stocks/investments

Specifically, the SEC stated that XRP could be classified as a security because it was used to fund the Ripple platform, which facilitates remittances between retailers. At first, the incident looked like a kid joke. After that, however, legal terminology took hold and confused half of the investors.

However, on February 10, 2022, Ripple filed its additional response regarding the SEC’s motion to dismiss the Fair Notice Claims Defense.

This is primarily a protest against the “inappropriate SEC request” for court notice.

In fact, the past two weeks have been quite eventful for the crypto community as investors see the lawsuit tilting in Ripple’s favour. Interestingly, some (very optimistic) analysts believe that absent the SEC lawsuit, XRP could compete with ETH on the leaderboard at the moment.

However, price analysis does not seem to confirm this story. At the time of writing, XRP is trading at $0.79, up 16.3% over the past week. The rally started on February 3rd and found strong support at $0.7692. Unexpectedly, demand also seems to increase in the $0.9102 to $0.7692 range. As a result, investors may have jumped at the buying opportunity.

Furthermore, the RSI seems to favor the bulls. A short-term consolidation could give hope to many buyers. At the same time, ascending wedge-shaped trend lines can also appear on the chart.

It is without a doubt a positive sign for XRP holders. However, before you decide to invest, the Volume Oscillator must be considered. That stat sits at -15.17% at the time of writing, so there are no signs of a pick-up in sight.

XRP/USD | Source: TradingView

What do the indicators show?

Oddly enough, many believe that the unexpected spike in XRP price action is due to the Ripple lawsuit. News in favor of Ripple loaded on February 3rd, after which XRP price rallied. This is only half the story if we look at other indicators.

For example, the number of daily active addresses tends to increase after 12/23/2021. This is an indication of how many unique addresses are active on the network as senders or receivers that do not form a flat area.

Essentially, this means that holders have not given up on XRP. They see some potential to monetize this coin by selling or buying it.

Source: Santiment

In addition, the number of whale deals has decreased significantly for more than 2 weeks.

Short-term holders have exited the market and long-term holders remain. Moreover, this also confirms the fact that the selling pressure has exhausted as the bulls execute orders on a macro perspective.

Source: Santiment

While some indicators may appeal to investors, another metric that tells a lot about future price action is the social dominance ratio.

Overall, a high social dominance rate is a positive sign for any coin. Investors tend to believe in it and sometimes hold the asset longer than expected due to the expectation of future returns.

In the case of XRP, however, the picture looks bleak. The token has no significant bullish post after September 7, 2021. This is definitely one thing investors can check before making a HODL decision.

Source: Santiment

Right now, risk takers are enjoying the returns that XRP brings. However, it is best for holders to know when to exit the market as the strength in the SEC case against Ripple could change soon.

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