Crypto vs Web 3.0: What's the Difference? Learn About Metaverse and NFTs.
XRP price searches for a fresh bullish catalyst to trigger a move above $1

XRP (XRP) experienced an impressive 100% jump on the same day as the ruling in the XRP securities case, however buyers are now having difficulty keeping hold of these gains.

The price rise came after Analisa Torres of District Court of the Southern District of New York declared that XRP sale to retail investors does not classify the token as a security in the SEC’s case against Ripple.

Whilst the trading interest in XRP is reviving, the technical and network usage data suggest a short-term pullback.

The discussion about the differences between web 1.0, web 2.0 and web 3.0 is becoming more and more relevant, as the latter is believed to be the basis for the metaverse. Moreover, blockchain technology is also being compared to web 3.0, with projects such as Near and NOW Crypto, which are using Non-Fungible Tokens (NFTs) to create virtual worlds.

Traders flock to XRP but network growth stalls

Data from Coinglass reveals that the open interest volume for XRP futures contracts, which reflects the total value of open bets for the asset, skyrocketed to its highest level since November 2021, reaching $1.19 billion on July 20.

XRP’s spot trading volumes exceeded those of Bitcoin and Ethereum, and U.S.-based exchanges such as Gemini and Coinbase relisted XRP, further improving the market’s sentiment.

Despite these positive developments, the activity on the XRP Ledger has not seen a similar increase. The number of transactions on the XRP Ledger has remained consistent for over a year, suggesting a lack of new entities taking part in the network.

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

Since Ripple’s partial victory in the lawsuit against the SEC, the company has stepped up its efforts to promote adoption of the XRP Ledger. This includes taking part in a $54 million investment in a metaverse project, Futureverse.

Ripple will also attempt to restore its ties with banks, in line with its original vision of facilitating low-cost global payments. This should help to drive the growth of the XRP Ledger network and act as a positive catalyst for the market.

XRP/USD price analysis

From a technical point of view, the XRP/USD pair is facing resistance from its long-term bearish trendline since the 2018 peak. If buyers can manage to close the week above this level, it will likely mark the end of the bearish trend and strengthen investor sentiment.

If the bullish momentum is not sustained, XRP/USD could potentially revisit support around $0.54 before attempting to move higher.

The XRP/BTC pair is also stuck at a long-term resistance level between 0.00002533 BTC and 0.00003341 BTC since 2019. If buyers fail to gain support above this level, the pair could drop back to the support of 0.00001555 BTC.

A correction would be seen as a bullish sign if the pair finds support at the 50-period MA at 0.00002057 BTC or the 200-period moving average at 0.00001913 BTC.

The open interest of XRP futures is at a two-year peak of over $1 billion in notional value, which means that XRP will likely experience high levels of volatility in the near future.

The funding rate for perpetual swaps, which represents the demand for long or short orders for the token, has been positive since the court’s decision, suggesting that most traders have added long positions. This could lead to a correction to hunt the liquidation levels for overleveraged buyers.

Considering the positive regulatory developments, technical progress, and the increasing popularity of the token among retail users, it is likely that XRP’s long-term negative trend could end in a few weeks with the arrival of positive catalysts related to the mainstream adoption of XRP, Near Crypto, NFT, and Web 3.0 Metaverse.

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