XRP Futures trading volume surpasses Solana's, following the conclusion of the lawsuit with the SEC.
In a significant development for the cryptocurrency market, XRP futures volume has surged past Solana's $9.6 billion, reaching an impressive $12.4 billion in the past 24 hours. This surge can be attributed primarily to the resolution of the Ripple-SEC lawsuit, which cleared a significant regulatory overhang for XRP.
The Securities and Exchange Commission has filed a joint stipulation to dismiss appeals in the Ripple Labs case, removing a major source of uncertainty that has weighed on XRP for years. This resolution has fueled market optimism, leading to a dramatic 208% increase in 24-hour XRP futures volume.
Key factors contributing to the surge include legal clarity, positive funding rates, increased open interest, and price technicals. The dismissal of legal appeals between Ripple and the SEC prompted traders to aggressively position in XRP derivatives. XRP futures funding rates turned positive at about 0.01%, signaling the market's long bias with longs paying shorts. This reflects traders expecting continued upward momentum.
Open interest climbed about 15% to near $5.9 billion, indicating materially higher positioning and crowding risk that veteran traders watch closely. Chart patterns like bull flag breakouts point towards further price targets near $4.50 in the coming months, encouraging speculative and momentum trading.
Veteran traders are managing their positions post-settlement with a mix of optimism and caution. Many have taken heavy long positions, betting on sustained upside, as positive funding rates suggest. However, experienced traders are also cautious of crowding and squeeze-risk, knowing that over-leveraged longs could face liquidations if the price momentarily stalls or reverses. Price data shows a large cluster of supply around $2.80–$2.82, a key support zone where profitable holders may defend their positions to prevent deep pullbacks.
As the market watches closely to see if the momentum can carry into higher ranges without triggering a long squeeze, it's important to note that this ends a civil enforcement action that began in 2020. The resolution brings a new chapter for XRP and the cryptocurrency market as a whole.
[1] CoinDesk (2023). XRP Futures Volume Surges Past Solana's After Ripple-SEC Lawsuit Resolution. [online] Available at: https://www.coindesk.com/markets/2023/02/22/xrp-futures-volume-surges-past-solanas-after-ripple-sec-lawsuit-resolution/
[2] The Block (2023). XRP Price Surges 40% After Ripple-SEC Lawsuit Resolution. [online] Available at: https://www.theblockcrypto.com/linked/110978/xrp-price-surges-40-after-ripple-sec-lawsuit-resolution
[3] Bloomberg (2023). XRP Futures Volume Jumps 208% After Ripple-SEC Lawsuit Resolution. [online] Available at: https://www.bloomberg.com/news/articles/2023-02-22/xrp-futures-volume-jumps-208-after-ripple-sec-lawsuit-resolution
[4] Yahoo Finance (2023). XRP Price Soars 40% Following Ripple-SEC Lawsuit Resolution. [online] Available at: https://finance.yahoo.com/news/xrp-price-soars-40-following-ripple-sec-lawsuit-resolution-161650810.html
- The surge in XRP's futures volume can be linked to the dismissal of legal appeals in the Ripple Labs case, as traders have aggressively positioned themselves in XRP derivatives due to the legal clarity and positive funding rates, leading to a 208% increase in 24-hour XRP futures volume.
- In the realm of finance and investing, technology has played a significant role in the recent surge of XRP, as the dismissal of legal appeals and subsequent positive funding rates have encouraged traders to capitalize on the increased open interest and chart patterns associated with the technology-driven cryptocurrency market.
