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Highlights
- XRP open interest held firmly above $3 billion on Friday as bullish traders remain reluctant to close out long positions.
- CME Group's announcement to launch Solana futures has reignited optimism for altcoin ETFs, potentially influencing XRP's market dynamics.
- XRP price rebounded to $2.14 after an early Friday dip to $1.95, with open interest remaining above $3 billion, as CME Group's Solana futures announcement boosts altcoin ETF optimism.
XRP price rebounded to $2.14 after an early Friday dip to $1.95, with open interest remaining above $3 billion, as CME Group’s Solana futures announcement boosts altcoin ETF optimism.
Ripple (XRP) price moves to defend $2 support as ETF approval edges closer
Ripple (XRP) experienced significant volatility this week, influenced by impending inflationary pressures from tariffs set to commence on March 1. Early Friday, XRP’s price dipped to $1.95 during European trading hours.
However, the U.S. trading session brought renewed momentum following CME Group’s announcement to introduce Solana futures contracts on March 17, pending regulatory approval. This development has sparked optimism for altcoin ETFs, leading to increased buying interest in XRP and other altcoins with pending ETF applications.
As a result, Ripple price rebounded by 5% within the day, reaching $2.14 at press time. While Solana, the main subject CME’s announcement, had its potential gains constrained by recent controversy surrounding Libra memecoin rug pull and impending 11.2 million SOL payouts from FTX Estate on March 1, investors have shifted focus to XRP, Hedera (HBAR), and Litecoin (LTC), all of which have ETF applications under review.
XRP open interest holds firm above $3B as traders anticipate ETF decision
XRP swift rebound to $2.14 after testing a three-week low of $1.95 highlights a strong market intent to maintain the $2 support level. Trends observed within XRP’s derivatives markets on Friday further support this narrative
Coinglass‘ Open Interest data indicates that, despite a 24.4% price decline over the past five days—from $2.58 on Monday to $1.95 on Friday—XRP’s open interest only decreased by 19.3%, from $3.73 billion to $3.01 billion in the same period.
When prices decline at quicker rate than Open Interest, it typically suggests that many bullish traders are opting to increase their margin requirements rather than liquidate their long positions.
This behavior aligns with recent developments, as many XRP speculative traders appear to be holding out for a favorable ETF decision, with approval odds seemingly increasing. Should XRP’s open interest remain above the $3 billion threshold observed this week, bearish forces may find it challenging to drive the price decisively below the $2 mark.
In summary, XRP’s resilience above the $2 support, coupled with steadfast open interest levels and positive ETF-related news, suggests a cautiously optimistic outlook for the cryptocurrency in the near term.
XRP Price Forecast: Consolidation above $2 keeps bears at bay
XRP price forecast remains neutral as the token consolidates above the critical $2 support level, signaling market indecision.
The Bollinger Bands indicate contracting volatility, with price action oscillating around the mid-line, suggesting a potential breakout. A move above $2.50 would confirm bullish momentum, while a close below $2.10 could expose XRP to further downside risks.
The MACD indicator leans bearish, with the signal line maintaining its downward slope, reflecting waning bullish momentum.
The histogram prints shallow red bars, indicating diminishing selling pressure. However, if MACD flips positive, it could signal an early trend reversal favoring bulls.
Trading volume remains steady, with notable buying interest emerging after XRP’s 29% drop over the last eight days.
This suggests that buyers are accumulating near key support levels. Should bulls sustain price action above $2.15, a rebound toward $2.50 remains on the table.
However, a breakdown below $2 could accelerate losses toward the lower Bollinger Band at $1.95, placing bears in control. The coming sessions will determine whether XRP stabilizes or faces another leg down.
Frequently Asked Questions (FAQs)
1. Will XRP price recover above $2.50 soon?
2. How does open interest above $3B impact XRP price?
3. Could ETF optimism push XRP higher?
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