XRP’s price experienced an astonishing 100% surge on the same day as the landmark ruling in the XRP securities case, where Judge Analisa Torres of the United States District Court for the Southern District of New York declared that XRP sales to retail investors do not classify the token as a security in the SEC’s case against Ripple.
This ruling reignited trading interest in XRP, leading to a surge in open interest volume for XRP futures contracts, which reached a high of $1.19 billion on July 20, the highest point since November 2021.
The surge in trading interest and the relisting of XRP on prominent U.S.-based exchanges, such as Gemini and Coinbase, boosted market sentiment.
However, despite the positive developments, network growth for XRP has not seen a corresponding increase.
The number of transactions on the XRP Ledger has remained steady for over a year, indicating a lack of new entities actively participating in the network.
Ripple, following its partial victory in the lawsuit, is striving to boost adoption of the XRP Ledger.
The company has invested $54 million in a metaverse project called Futureverse and plans to rebuild its relationships with banks, aiming to facilitate low-cost global payments.
READ MORE: China’s Digital Yuan Soars: Business Travelers Can Now Pay for Flights with CBDC
These initiatives are expected to promote network growth and serve as positive catalysts for the market.
From a technical perspective, the XRP/USD pair faces resistance from a long-term bearish trendline dating back to the 2018 peak.
A weekly close above this level could strengthen investor sentiment and potentially mark the end of the bearish trend.
However, if buyers fail to sustain the bullish momentum, XRP/USD might revisit support around $0.54 before making another upward move.
Similarly, the XRP/BTC pair is also encountering resistance between 0.00002533 BTC and 0.00003341 BTC, a level that has proven challenging to breach since 2019.
Failure to establish support above this level could lead the pair back to support around 0.00001555 BTC.
Despite the positive regulatory developments and technical progress, there are indications of potential short-term pullbacks due to the significant volatility exhibited by XRP, given its futures open interest reaching over $1 billion.
The funding rate for perpetual swaps has trended positively since the court ruling, suggesting an increase in long positions, which raises the possibility of a correction to liquidate overleveraged buyers.
However, considering the positive regulatory landscape, technical advancements, and the token’s popularity among retail users, it is plausible that XRP’s long-term negative trend may conclude in the coming weeks with the advent of positive catalysts related to mainstream adoption of XRP.
Other Stories:
Vermont Department of Financial Regulation Issues Stark Crypto Warning
2023 Ranking: 4 Best Crypto Projects To Invest In
