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Highlights
- XRP price maintained support above $2 despite a 6% crypto market decline on Sunday.
- Options open interest surged 125%, signalling increased speculative activity in the derivatives market.
- XRP price outlook depends on SEC leadership transition, impacting trader sentiment in the week ahead
XRP price is holding firm above $2 as traders position for a potential rebound, with derivatives data hinting at bullish momentum for the week ahead.
Ripple (XRP) Holds Firm Above $2 as Markets Await Clarity
Ripple (XRP) has endured volatile price action over the past week. XRP price closed the last three days of the week with 17% losses, plunging as low as $2.06 on Saturday, before bulls battled back to retake $2.10 at press time on March 31.
Looking into the week ahead, market momentum hangs in the balance.
Crypto traders are awaiting clarity on the U.S. Congress confirmation process of Trump’s SEC chair nominee, Paul Atkins, a more crypto-friendly option to replace Gary Gensler. Amid concerns of conflicts of interest, investors will be closely watching.
If Atkins’ confirmation faces rejection, many traders could begin selling, potentially driving Ripple price below $2 in the week ahead.
125% Surge in Options Trading Hints Positive Start to the Week
While XRP held firm at the $2 support in the spot markets, traders appear to be placing optimistic bets in the derivatives markets.
Coinglass‘ latest data shows XRP options volume has surged by 125.93% to $7,540, while open interest grew 149.56% to $978,100. This significant increase suggests that investors are actively positioning for a strong move.
Additionally, XRP’s long/short ratio of 0.9708 in the past 24 hours indicates a nearly balanced sentiment, slightly favouring long positions. Binance’s XRP/USDT long/short ratio for accounts stands at 3.1, signalling that traders on major exchanges expect a rebound.
The top trader long/short ratio (accounts) on Binance is also at 2.8, further reinforcing this optimism.
Another bullish signal is the 12-hour liquidation data, showing that $3.86M worth of long positions remained resilient compared to $1.78M short liquidations. This suggests that long traders are more confident in their positions, reducing the likelihood of a major sell-off.
However, traders should remain cautious of the overall decline in trading volume, down 15.03% to $7.27B. This slowdown in market activity could limit XRP’s upside potential unless fresh catalysts emerge.
At press time on Sunday, XRP price is showing resilience at $2, with derivatives traders placing bullish bets on a rebound. If positive momentum persists, XRP could target the $2.50 level in the coming week.
However, regulatory uncertainty surrounding the SEC chair confirmation remains a key risk factor to watch.
XRP Price Forecast: Bullish Breakout Could Send XRP to $2.50 Next Week
XRP price forecast remains optimistic as the token holds steady above $2 despite the formation of a bearish pennant on the daily chart. The Parabolic SAR dots above the candles signal persistent bearish pressure, but the narrowing Keltner Channel (KC) suggests volatility is contracting, potentially setting up a sharp breakout. XRP price recently tested the lower KC boundary at $2.0273, reinforcing it as a key support level.
A bullish scenario emerges if XRP reclaims the middle KC line at $2.3043. A decisive close above this level could drive momentum toward the upper boundary at $2.58, paving the way for a $2.50 retest next week. Increasing options open interest from derivatives traders further strengthens the case for an upside move.
However, a breakdown below $2.02 could invalidate this outlook. A daily close below this level may trigger further liquidations, exposing XRP price to the $1.90 zone. With volume declining and bearish formations still dominant, bulls must reclaim $2.30 quickly to confirm the reversal. Until then, XRP traders should watch for sustained momentum shifts before committing to a firm directional bias.
Frequently Asked Questions (FAQs)
1. Will XRP price stay above $2 this week?
2. Why did XRP options trading surge 125%?
3. Could XRP price hit $2.50 soon?
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