Cryptocurrency enthusiasts have been closely following the price movement of XRP, following last week’s landmark ruling in the XRP securities case, where judge Analisa Torres ordered that XRP sale to retail investors does not qualify the token as a security. The price witnessed an extraordinary 100% surge on the day of the ruling, but the high hasn’t sustained, leading to market speculation about a potential significant upwards push.
As observed from Coinglass data, the open interest in XRP futures contracts hit a high mark since November 2021 at $1.19 billion on July 20. XRP’s spot trading volumes went beyond popular cryptocurrencies like BTC and ETH, further pushing the price upwards.
Simultaneously, US-based exchanges like Coinbase and Gemini also re-listed XRP contributing to the current market sentiment. However, a puzzling contradiction lies in the network activity of XRP, which hasn’t kept pace with its trading interest. The data implies a lack of new entities in XRP’s blockchain network, suggesting a prospective short-term pullback.
The recent court ruling has led Ripple Labs to increase its efforts in promoting XRP Ledger adoption. Among these initiatives, the firm has made a significant $54 million investment in Futureverse, a metaverse project. It is also seeking to strengthen ties with banks to achieve low-cost global payments, aligning with its initial vision.
Technically, the XRP/USD pair indicates resistance from its long-term bearish trend line since the 2018 peak. If the price can break through this, there’s a likelihood of stronger investor sentiment and a possible end to the bearish trend.
Nevertheless, there’s a catch here. If the bullish momentum doesn’t sustain, XRP/USD might revisit support around $0.54 before moving up. The XRP/BTC pair is also at a long-term resistance level which it has not surmounted since 2019.
It seems that the future of XRP is heavily intertwined with both market speculation and actual network adoption. A blend of positive regulatory development, technical progress, and increased retail user base could possibly spell an end to XRP’s downward trajectory. Regardless, the near-term future will undeniably be volatile, which could, ironically, be both a boon and bane for traders.
Source: Cointelegraph
