XRP price has managed to maintain support above $2, despite a 6% decline in the broader crypto market on Sunday, signaling potential bullish momentum in the week ahead. The surge in options trading by 125% suggests that traders are positioning for a rebound toward the $2.50 level.
Market Overview
Ripple (XRP) saw volatile price action in the past week, experiencing a 17% drop over three days, reaching as low as $2.06 on Saturday, before recovering slightly to $2.10 by press time on March 31. This price action has traders closely monitoring the situation, with many looking to the U.S. Congress for clarity regarding the confirmation process of Paul Atkins, President Trump’s nominee for SEC chair. A more crypto-friendly figure, Atkins’ confirmation could spark optimism, while a rejection might lead to a sell-off and push XRP below the $2 support level.
Options Market Surge
In the derivatives market, XRP options trading has seen a remarkable increase. Data from Coinglass reveals a 125.93% surge in options volume to $7,540 and a 149.56% rise in open interest to $978,100. These figures highlight that investors are preparing for significant price movements, with XRP’s long/short ratio indicating a slight bullish sentiment.
Moreover, a positive signal is the resilience of long positions in the liquidation data, with $3.86M worth of long positions remaining intact, compared to $1.78M in short liquidations. This suggests that long traders are confident, reducing the risk of a major sell-off.
Price Forecast: Targeting $2.50
Despite the overall bearish pressure, indicated by the Parabolic SAR and the formation of a bearish pennant on the daily chart, XRP’s price is showing resilience. A key support level at $2.02 has been tested, and if XRP can reclaim the $2.30 level, it could push toward the upper boundary of the Keltner Channel (KC), which sits around $2.58.
With increasing open interest and options market optimism, there is a potential for XRP to target $2.50 if momentum continues in the coming week. However, traders should remain cautious of the declining market volume, which could limit XRP’s upside potential unless a new catalyst emerges.
Key Risk Factors
The regulatory uncertainty surrounding the SEC chair confirmation remains a critical risk factor. If Paul Atkins’ nomination is delayed or rejected, it could lead to increased selling pressure, pushing XRP below the $2 threshold and possibly toward the $1.90 region.
In conclusion, while XRP price remains above $2, its outlook hinges on regulatory developments and market sentiment. If XRP can break through the $2.30 resistance and sustain upward momentum, a potential rebound to $2.50 is on the horizon. Traders should closely monitor for any shifts in sentiment or volume before committing to a clear directional stance.
Related topics:
ICE Partners with Circle to Boost USDC in Finance
Crypto Market Struggles: BTC, ETH, SOL, XRP, SHIB, DOGE, and Others in Red
