XRP (XRP) price booked an incredible 100% gain on the same day as the landmark ruling in the XRP securities case, but buyers are now struggling to hold on to these gains.
The price surge came after judge Analisa Torres of District Court of the Southern District of New York ordered that XRP sale to retail investors does not qualify the token as a security in the U.S. Securities and Exchange Commission’s (SEC) case against Ripple.
While the trading interest in XRP is reviving, the technical and network usage data hint at a short-term pullback.
Traders flock to XRP but network growth stalls
According to Coinglass data, the open interest volume for XRP futures contracts, which represents the total value of open bets for the asset, surged to its highest point since November 2021, reaching $1.19 billion on July 20.
XRP’s spot trading volumes topped Bitcoin and Ethereum and U.S.-based exchanges like Gemini and Coinbase relisted XRP, boosting the market’s sentiment further.
Despite these positive developments, the network’s activity has not witnessed a similar increase. The number of transactions on the XRP Ledger has remained consistent for over a year, indicating a scarcity of new entities actively participating in the network.
The XRP Ledger is a blockchain-based distributed ledger technology (DLT) that was created by Ripple Labs. XRP is used as a payment token on the network and also used to secure the blockchain.
Since Ripple’s partial win in the lawsuit against the SEC, the firm has ramped up its efforts for XRP Ledger adoption. Starting with participating in a $54 million investment in a metaverse project, Futureverse.
The firm will also seek to re-establish its ties with banks aligning with its original vision of facilitating low cost global payments. These will likely promote the network growth of XRP Ledger and act as positive catalysts for the market.
XRP/USD price analysis
Technically, the XRP/USD pair shows resistance from its long-term bearish trendline since the 2018 peak. A weekly close above this level should strengthen investor sentiment and mark an end to the bearish trend.
If buyers fail to maintain the bullish momentum, XRP/USD will likely revisit support around $0.54 before making a move higher.
The XRP/BTC pair is also stuck at a long-term resistance level between 0.00002533…
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