20h05 ▪
5
min read ▪ by
As the legal showdown between the SEC and Ripple drags on, the crypto XRP refuses to give in to pessimism. On the contrary, the asset shows surprising vitality in the derivatives markets. This unexpected resilience raises an essential question: is XRP preparing a strategic reversal, against the current regulatory climate?
In brief
XRP maintains its resilience despite legal tensions with the SEC.
Derivatives markets show renewed interest with over 4 billion in Open Interest.
Technical indicators point to a bullish scenario to be confirmed.
XRP: Heading Steady Despite the Regulatory Storm
In the crypto world, it is rare to see an asset hold strong under constant legal pressure. Yet, XRP, the flagship crypto of Ripple, continues to show an almost provocative resilience. While the legal proceeding against the SEC has just experienced a new twist, with a request to suspend appeals until August 15, the market itself chooses patience… and optimism.
The context is delicate. Ripple and the SEC are trying to buy time, invoking a possible decision by Judge Analisa Torres on lifting the injunction still blocking 125 million dollars in escrow.
The agency requests 50 million in penalties, the rest to be returned to Ripple. Behind the scenes, legal negotiations continue, but on the derivatives markets, traders are not waiting for the verdict to take positions.
Despite legal uncertainty, Open Interest on XRP derivative contracts now exceeds 4 billion dollars. This nearly 3% increase signals a resurgence of activity, fueled by a wave of leveraged buying. In other words, bullish bettors are stepping up, determined to bet on a favorable reversal.
The average funding rate, which rose to 0.0096%, confirms this buying pressure. This rate, charged to buyers to balance futures and spot markets, only increases when bullish demand becomes significant.
However, caution remains advisable. Long positions have suffered more liquidations than shorts ($9.27 million vs. $6.46 million), a sign that the bullish momentum is fragile and could falter at the slightest bad news.
Yet, the long/short ratio nearly balanced at 0.996 suggests a still polarized market. Bullish traders hold the upper hand, but without overconfidence. It is this subtle tension, between hope and restraint, that gives XRP’s situation all its complexity.
Technical Analysis
On the chart side, XRP shows encouraging signs, without yet crossing the decisive threshold. After a 3.35% rise on Monday, the token faces two significant resistances: the 50- and 100-day exponential moving averages. As long as no clear close above these levels, around $2.24, is recorded, the bullish scenario remains pending.
One detail deserves attention: the formation of a dynamic resistance line established since January, acting as an invisible ceiling. It regularly repels breakout attempts.
A close above this barrier could push XRP toward its weekly high of $2.33. Supporting this scenario, the MACD indicator has just positively crossed its signal line, generating a buy signal. However, the RSI remains neutral at 49, reflecting the prevailing wait-and-see attitude.
Conversely, a drop below the 200-day moving average at $2.09 could trigger massive sell orders. The next support lies at $1.79, corresponding to the lowest point in the last three months. A decisive test that could sweep away current enthusiasm or turn it into a genuine bullish explosion, depending on the judge’s verdict.
In a crypto market still traumatized by past scandals and regulatory crackdown, XRP stands out as an anomaly. A currency under SEC scrutiny that continues to generate interest, volatility, and hope. This paradox is not by chance but reflects a community of traders convinced that Ripple will eventually turn the page on the legal battle.
And if Judge Torres sides with Ripple in August, XRP could emerge stronger than ever. But in the meantime, patience, technical analysis, and a touch of boldness dictate market rules while the asset’s network activity continues to soar.
Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
