Ripple Registers Another Win In the SEC Case, XRP Tops $1

The cryptocurrency market has remained volatile over the last weeks since China’s crackdown and ban on crypto mining and trading activities. Bitcoin (BTC) has been facing downward pressure trading slipping under $35,000. 

Similarly, the altcoin space has remained largely volatile with the Ether (ETH) price oscillating across $2500. While there’s no clear momentum ahead for other altcoins, Ripple’s XRP made a move past $1.0 on Monday, May 31. 

The Ripple price rally came as the San Francisco-based blockchain startup registered another win in its case against the U.S. SEC. Ripple has successfully managed to stop the SEC who was seeking access to Ripple’s legal memos concerning the sale of XRP in its 2013 ICO. By accessing these records, the regulator wanted to prove that Ripple was well aware of XRP’s ‘security’ status before conducting the SEC. 

Last Sunday, May 30, New York District Court Judge Sarah Netburn released the verdict publicly stating “Ripple asserts that the SEC’s requested communications are protected by the attorney-client privilege, which has not been waived”. 

In its defense, Ripple said that the SEC never issued a ‘fair notice’ whether if the company was committing any securities violations. Ripple further pointed out why it took the SEC eight long years after the ICO to file a case against the company. 

Ripple also hinted out that other regulatory bodies like FinCEN and the U.S. Justin Department ha already declared XRP as a convertible virtual currency. 

Although the recent court verdict was sort of a micro-win for Ripple, Judge Netburn added “The Court takes no position about whether Ripple’s pleaded defense is cognizable or if it will prove meritorious.” 

Ripple investors responded by taking the XRP price above $1.0 and it has been staying there for the last 24-hours. 

Bitcoin (BTC) Under Selling Pressure, Ethereum (ETH) Whale Accumulation Continues

Bitcoin (BTC) has been under severe pressure recently as the world’s largest crypto has been trading sideways after facing rejection at $40,000 levels. The Bitcoin network’s on-chain settlements in USD have shot above $55 billion per day. This settlement is 60% more than volumes during the 2017 peak market, as reported by on-chain data provider Glassnode

Bitcoin Chain Volume

Bitcoin-BTC-On-Chain-Volume (Courtesy: Glassnode) 

The data provider also adds that “throughout May, a total of 155k BTC have transitioned from an Illiquid state (HODLed) to Liquid or Highly Liquid state providing an estimate of the total ‘sell pressure’”. 

During the recent market correction, short-term holders (STHs) have ended up booking major losses. On the other hand, long-term holders (LTHs) and miners have been accumulating during the recent dips. 

However, as Bitcoin continues to trade sideways, the profit margins for LTHs are getting thinner. The Net Unrealised Profit and Loss (NUPL) for LTH is falling below the 0.75 threshold. Based on the historical charts, and drop below it could set the trend for the next bear market. 

Bitcoin Unrealised

Bitcoin-BTC-Unrealised-PnL (Courtesy: Glassnode) 

Coming to Ethereum (ETH), it has been oscillating around $2500 for a while now. However, Ether continues to get strong whale backing and institutional backing at present. 

While small ETH addresses have started reducing their holdings, big whale addresses with a balance of 10K-100K ETH have been accumulating at the same time. 

Ethereum Whale

Ethereum-Whale-Accumulation (Courtesy: Glassnode) 

On the other hand, institutions like Purpose Investments have continued to accumulate during the recent correction. The total holdings of the Purpose Ether ETF have moved past 51,600 coins. 

Crypto Market News

– The Indian Central Bank released a regulatory update on Monday stating that its 2018 crypto ban rule for banks doesn’t hold true anymore after last year’s Supreme Court decision to uplift the ban. As a result, it has asked local banks to not restrict crypto fund flows of investors while quoting the previous rule. This has created a positive among the Indian crypto community which has been constantly under the fear of strong regulatory actions. 

– The U.S. SEC has sued BitConnect promoters for promoting unregistered security during its 2017 token sale and raising over $2 billion. BitConnect Price is at a current level of 1.923, a 92.31% change from one year ago.

– Citing strong regulations, Chinese cryptocurrency exchanges have started suspending contract trading facilities on their platforms. Platforms like BitMart are letting investors close their already existing positions but not open new ones. With the regulatory crackdown, most of the Chinese traders have decided to move their trades to OTC desks.