• XRP prices rallied 100% after Ripple’s victory in a securities case, but buyers are now struggling to hold onto those gains.
• Open interest for XRP futures contracts has surged to its highest point since November 2021, and U.S.-based exchanges like Gemini and Coinbase have relisted XRP.
• Despite these positive developments, the network’s activity has not witnessed a similar increase, suggesting that the price could soon pull back.
Ripple’s Victory Sparks Price Surge
XRP’s price booked an incredible 100% gain on the same day as the landmark ruling in the XRP securities case, with Judge Analisa Torres of the United States District Court for the Southern District of New York ordering that XRP sales to retail investors do not qualify it as a security in the U.S. Securities and Exchange Commission’s (SEC’s) case against Ripple. Traders flocked to take advantage of this rally, leading open interest volume for XRP futures contracts to reach $1.19 billion on July 20th – its highest point since November 2021 – while spot trading volumes also topped Bitcoin (BTC) and Ether (ETH).
Network Growth Fails To Keep Up
Despite these positive developments, however, network growth has remained stagnant; The number of transactions on the XRP Ledger has stayed consistent for over a year, indicating that there are few new entities actively participating in the network. This suggests that despite current bullish sentiment, further gains may be difficult without more widespread adoption of Ripple’s blockchain technology by banks and other financial institutions.
Ripple Seeks To Address Adoption Issues
In response to this issue, Ripple Labs has ramped up efforts towards wider adoption of their blockchain technology; they recently took part in a $54 million investment through Futureverse metaverse project and are looking to reestablish ties with banks aligning with their original vision of facilitating low-cost global payments – both of which should help promote greater usage and growth of XRP Ledger network activity going forwards.
Technical Analysis Suggests Short-Term Pullback
Technically speaking, resistance appears from its long-term bearish trendline since 2018 peak; A break above this line is needed for bulls to gain traction over bears again and push towards $1 mark or higher levels in future sessions . Currently , buyers need fresh catalysts apart from legal wins if they want higher highs .