XRP price searches for a fresh bullish catalyst to trigger a move above $1

XRP saw an incredible 100% gain in price on the day of the historic decision in the XRP Securities case, but buyers are now struggling to hold on to these gains.

Prices jumped after Judge Analisa Torres of the United States District Court for the Southern District of New York ruled that the sale of XRP (XRP) to retail investors does not qualify the token as a security in the US Securities and Exchange Commission (SEC) case against Ripple.

While trading interest in XRP is reviving, technical and network usage data are showing signs of short-term downside.

Traders Are Attracted To XRP But Network Growth Stalls

Open interest volume for XRP futures contracts, which represents the total value of open bets on the asset, reached its highest point since November 2021, reaching $1.19 billion on July 20, according to CoinGlass data.

XRP’s spot trading volumes surged above bitcoin (BTC) and ether (ETH) and US-based exchanges such as Gemini and Coinbase re-listed XRP, further boosting market sentiment.

Despite these positive developments, the activity of the network has not seen a corresponding increase. The number of transactions on the XRP ledger has remained consistent for over a year, indicating a lack of new entities actively participating in the network.

XRP Ledger is a blockchain-based distributed ledger technology that was created by Ripple Labs. XRP is used as a payment token on the network and is also used to secure the blockchain.

Since Ripple’s partial victory in its lawsuit against the SEC, the company has ramped up its efforts to drive adoption of the XRP Ledger. participating in In a $54 million investment in the Metaverse project, Futureverse.

The company will also endeavor to re-establish its relationship with banks in line with its core vision of facilitating low-cost global payments. These will likely fuel the network growth of XRP Ledger and act as a positive catalyst for the market.

XRP/USD Price Analysis

Technically, the XRP/USD pair is showing resistance from its long-term bearish trend line since its 2018 peak. A weekly close above this level should strengthen investor sentiment and signal an end to the bearish trend.

If the buyers fail to sustain the bullish momentum, XRP/USD is likely to find support near $0.54 before making a move higher.

The XRP/BTC pair is also stuck at the long-term resistance between 0.00002533 BTC and 0.00003341 BTC. Buyers have failed to move above this since 2019. Failure to build support above this level could cause the pair to retest support around 0.00001555 BTC.

Connected: XRP Price May Fall 40% By September – Fractal Analysis

A correction will be considered bullish if the pair finds support at the 50-period moving average (MA) at 0.00002057 BTC or the 200-period EMA at 0.00001913 BTC.

As mentioned above, futures open interest for XRP is at a two-year high of over $1 billion in estimated value. Thus, XRP will exhibit significant volatility in the near term.

The funding rate for perpetual swaps, which represent the relative demand for long or short orders for the token, has been trending positively since the court’s iconic ruling, which suggested most traders have added long positions, raising the possibility of a correction once again with overleveraged buyers looking for liquidation levels.

Given the positive regulatory developments, technological advancements, and popularity of the coin among retail users, it is likely that XRP’s long-term negative trend may come to an end in a few weeks with the arrival of positive catalysts related to XRP’s mainstream adoption.