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XRP price seeks new bullish catalyst to surpass $1 threshold.

The price of XRP experienced a remarkable surge of 100% following the landmark ruling in the XRP securities case. Judge Analisa Torres of the District Court of the Southern District of New York ruled that the sale of XRP to retail investors does not classify the token as a security in the SEC’s case against Ripple. Despite this positive development, buyers are struggling to hold on to these gains.

According to Coinglass data, the open interest volume for XRP futures contracts, which represents the total value of open bets for the asset, reached $1.19 billion on July 20. This is the highest point since November 2021. XRP’s spot trading volumes surpassed those of Bitcoin and Ethereum, and U.S.-based exchanges like Gemini and Coinbase relisted XRP, further boosting market sentiment. However, while trading interest in XRP is reviving, the network’s activity has not seen 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.

Ripple Labs, the creator of the XRP Ledger, is ramping up efforts for XRP Ledger adoption following their partial win in the SEC lawsuit. They recently participated in a $54 million investment in Futureverse, a metaverse project. Ripple Labs also aims to re-establish its ties with banks, aligning with its original vision of facilitating low-cost global payments. These efforts are expected to promote the network growth of XRP Ledger and act as positive catalysts for the market.

From a technical analysis perspective, the XRP/USD pair is facing resistance from its long-term bearish trendline since the 2018 peak. A weekly close above this level could strengthen investor sentiment and mark the end of the bearish trend. However, if buyers fail to maintain the bullish momentum, XRP/USD may revisit support around $0.54 before making a move higher. Similarly, the XRP/BTC pair is stuck at a long-term resistance level and may revisit support around 0.00001555 BTC if it fails to build support above this level.

The futures open interest for XRP is at a two-year peak of over $1 billion in notional value, indicating significant volatility in the near term. The funding rate for perpetual swaps has also trended positive since the court’s ruling, suggesting that most traders have added long positions. This raises the possibility of a correction to hunt the liquidation levels for overleveraged buyers.

Despite the recent surge, it is important to note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. Additionally, this article is for general information purposes and should not be taken as legal or investment advice. The views and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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