TLDR
- XRP price has rebounded to around $2.24 after dropping below $2
- The ongoing Ripple vs. SEC lawsuit may be nearing resolution with a possible $125 million fine
- Federal Reserve expected to pause interest rates with 99% probability according to CME Group data
- Derivatives data shows bullish sentiment with a 2.49 long/short ratio on Binance
- Franklin Templeton joins Grayscale and WisdomTree in the race for XRP ETF
XRP, the native cryptocurrency of the Ripple network, has shown strong recovery in recent market activity. The token has bounced back to $2.24 after falling below $2 earlier this week. This 18% surge comes amid market speculation about the resolution of Ripple’s long-standing legal battle with the SEC.
The price rebound coincides with positive macroeconomic data. February’s Consumer Price Index (CPI) revealed inflation easing to 2.8%, down from 3% in January. This cooling inflation trend has boosted investor confidence across crypto markets.
Traders have been closely watching XRP price movement as it attempts to break through the $2.34 resistance level. This price point aligns with the 20-day Exponential Moving Average (EMA). Market analysts suggest a successful breakout could lead to a rally toward $2.60.
The ongoing lawsuit between Ripple and the Securities and Exchange Commission has been a major factor limiting XRP price growth. According to insider reports, the case may be wrapping up soon. The delay appears to center around a potential $125 million fine and restrictions on selling XRP to institutional investors.
Recent technical analysis shows XRP trading between $2.03 and $2.27. The Relative Strength Index (RSI) shows upward momentum despite minor divergence. The Ichimoku cloud indicates a possible bullish crossover in the near future.
CME Group’s FedWatch tool now suggests a 99% chance that the Federal Reserve will maintain current interest rates in its upcoming March 21 meeting. This dovish outlook has helped spark renewed interest in risk assets like XRP.
Derivatives data supports the bullish case for XRP. Open interest has risen by 3.48% to $3.05 billion. Options open interest has increased by 10.69% to $1.37 million, showing growing institutional appetite.
Long/short ratios further confirm positive sentiment. Binance’s long/short ratio for XRP/USDT stands at 2.49, while OKX traders show a 2.14 ratio. These numbers indicate more traders are opening long positions expecting further gains.
Volume analysis reveals that selling pressure appears to be weakening. The recent price surge follows a period where volume contracted after a 1.63 billion token selloff. This suggests sellers may be losing momentum in the market.
Beyond the lawsuit resolution, other factors could drive XRP price growth. Ripple is creating a DFSA license to enable blockchain-powered crypto payments. This development could expand Ripple’s payment infrastructure globally.
Major asset managers have shown interest in XRP products
Several major asset managers have shown interest in XRP-based investment products. Franklin Templeton has joined Grayscale and WisdomTree in pursuing an XRP ETF. These institutional developments could bring new capital flows to the XRP market.
The price correction before this rebound was steep, with XRP dropping 27.53% from recent highs. However, buyers have defended recovery gains above the $2.24 level. Support now sits at the lower Bollinger Band around $1.92.
If XRP maintains its current momentum, analysts see potential for a push toward $2.76, a key level from recent highs. A rejection at $2.34 could delay further gains, keeping the market range-bound.
Liquidation data shows bears may be losing control of the market. Recent 24-hour data revealed $4.25 million in long liquidations versus $4.61 million in short liquidations, suggesting short positions face mounting pressure.
The recovery in XRP price mirrors broader crypto market resilience, with Bitcoin recently reclaiming levels above $83,000. However, XRP still faces challenges before it can test higher targets.
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