The price of Ripple (XRP) continues to hold above the key $2 mark, while derivatives markets show a significant increase in optimism. Options trading volume on XRP has surged by over 125%, signaling a potential move toward $2.50 in the coming days.
XRP Shows Resilience Amid Volatility
Despite recent fluctuations that brought a 17% loss over three days, XRP has managed to stay above $2. On Saturday, the price briefly dipped to $2.06, but by Sunday (March 31), it began recovering toward $2.10. Investors are now watching closely to see what the upcoming week will bring, as market sentiment remains uncertain.
Regulation in Focus: SEC Chair Confirmation Could Shift Momentum
A key factor influencing sentiment is the potential confirmation of Paul Atkins as the new chairman of the U.S. Securities and Exchange Commission (SEC), replacing Gary Gensler. Atkins is seen as crypto-friendly, and if Congress rejects his nomination, it could trigger a sell-off in XRP, pushing the price below $2.
Derivatives Traders Go Bullish as Options Activity Surges
According to data from Coinglass, there’s been a sharp increase in derivatives activity:
XRP options volume jumped 125.93% to $7,540
Open interest rose 149.56% to $978,100
These figures suggest that investors are positioning for a strong price move.
Long Positions Dominate, but Trading Volume Slips
Market sentiment appears nearly evenly split, with a slight tilt toward long positions (long/short ratio at 0.9708). On Binance, the ratio is more pronounced at 3.1, reflecting higher confidence in a rebound. Among Binance’s top traders, the long/short ratio stands at 2.8, reinforcing the bullish bias.
Additionally, 12-hour liquidation data shows long positions holding strong, with $3.86 million liquidated in longs versus $1.78 million in shorts.
However, total trading volume fell by 15.03% to $7.27 billion, suggesting that unless a new catalyst emerges, XRP’s upward momentum might face resistance.
Technical Analysis: XRP Primed for Breakout?
Despite a bearish pennant formation on the daily chart, XRP still shows potential.
Parabolic SAR above the candles suggests lingering selling pressure
A narrowing Keltner Channel (KC) signals reduced volatility, often a precursor to a breakout
The recent test of the KC lower bound at $2.0273 has solidified it as a critical support level.
If XRP regains the midline at $2.3043, the price could climb toward the upper KC bound at $2.58, opening the door for a retest of $2.50 next week.
Key Risks Ahead: Can Bulls Hold the Line?
A drop below $2.02 could invalidate the bullish setup. A daily close under this support could trigger more liquidations and drive XRP toward the $1.90 zone. Bulls must reclaim $2.30 quickly to confirm a trend reversal. Until then, traders are advised to watch for consistent momentum shifts before committing to strong directional bias.
Summary: Optimism Builds, but Regulatory Uncertainty Remains
Derivatives traders are betting on a positive move, but a clear catalyst is needed. Everything now hinges on the outcome of the SEC leadership confirmation. If the result favors the crypto sector, XRP could push toward $2.50. Otherwise, the price could face renewed pressure.
At the time of writing, XRP is trading at $2.18.
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