XRP price has been hovering around $0.80 for the past week as it struggles to break the $1 level. However, Ripple’s recent win against the US Securities and Exchange Commission (SEC) has served as a catalyst and several indicators suggest that a breakout is on the horizon. If XRP can overcome new upside catalysts, it could make a significant move.

The explosive gain in XRP’s price when Ripple scored a victory against the SEC was not enough to push the price past the psychologically important $1 mark. With the market currently experiencing range trading and a flip in the Fear & Greed Index, the struggle below $0.80 has led to some frustration among XRP traders.

What’s the Outlook for XRP?

Despite pulling back below $0.80 (after reaching above $0.93 last week), open interest in XRP futures contracts remains high, indicating the strength of the recent trend. In fact, open interest in XRP futures soared to $1.19 billion on July 20, the highest level since November 2021.

In addition, the global spot trading volumes for XRP have been surging, with on-chain data showing that XRP volumes have surpassed Bitcoin’s volumes, driven by significant interest in South Korea.

Recent developments around the adoption of Ripple technology have also injected positive sentiment into the XRP market. Following the partial win against the SEC, reports emerged that Ripple was seeking to regain the interest of major financial players in its cross-border payments and remittances technology.

Ripple has also made headlines with its $54 million investment in Futureverse, an AI and metaverse-focused project. With more positive catalysts across the crypto market, XRP’s price has the potential to break through the key resistance level and end the month on a high note.

However, while a move higher is likely given these factors, a negative shift in sentiment could lead to a bearish retest if prices remain near their current levels. The primary support level below $0.70 is around $0.50.

FAQs

What is XRP?

XRP is a cryptocurrency that is used in Ripple’s payment protocol, facilitating fast and low-cost international money transfers and remittances.

What was Ripple’s win against the SEC?

Ripple’s win against the SEC refers to a partial victory in the legal battle between Ripple Labs and the US Securities and Exchange Commission. The court ruled that Ripple’s native cryptocurrency XRP is not a security, which had significant implications for the future of XRP.

What is open interest in futures contracts?

Open interest in futures contracts refers to the total number of outstanding contracts that have not yet been settled or closed by offsetting positions or delivery. It is often used as an indicator of market sentiment and the potential for price movements.

What is the Fear & Greed Index?

The Fear & Greed Index is a sentiment indicator that measures the emotions and psychology of market participants. It ranges from 0 to 100, with extreme fear indicating a potential buying opportunity and extreme greed suggesting a possible market top.