XRP (XRP) experienced a surge of 16% within 24 hours following reports on March 19 that the ongoing legal conflict between Ripple and the US Securities and Exchange Commission (SEC) might reach a resolution. Nonetheless, XRP has since relinquished about half of those gains over the last couple of days, falling below the significant threshold of $2.50.
### XRP’s Rally Driven by Spot Market Activity
On January 16, XRP reached its all-time high of $3.40, fueled by a substantial rise in spot buying volumes that supported a prolonged parabolic ascent.
A similar trend appears to be reemerging in the XRP market currently. Recent data suggests that the cumulative trade delta indicator for aggregated spot markets has turned positive for the first time since late January.
The cumulative trade delta tracks the net variance between aggressive buy and sell trades across various exchanges. When this indicator turns positive and exceeds zero, it signals an increase in buying pressure, indicating that market buying trades are outpacing sell trades. This rising trend exemplifies persistent demand from buyers, which subsequently drives prices upward.
However, a negative aggregated premium concerning open interest suggests that the futures market is still betting against a rise in XRP’s price, indicating a continuing conflict between bullish spot positions and bearish futures contracts.
### XRP Could Reach $2 Before Targeting New Peaks
An anonymous crypto trader known as CrediBULL Crypto has indicated that XRP may be poised to exceed its previous all-time high of $3.40 in the coming weeks, but anticipates a possible retest of its recent lows around $2 prior to the next upward movement.
Utilizing a Power of 3 technical framework, the trader noted that XRP is presently within an accumulation phase, which may be followed by a period of manipulation where prices could test lower liquidity levels in the $1.80 to $2 range.
Market analyst Dom has pointed out that the all-time high volume weighted average price (VWAP) remains a bullish benchmark for XRP, emphasizing the need for stabilization around the $2.50 level.
While short-term directional trends remain uncertain, XRP’s long-term market structure appears “constructive.” One of the critical ranges at $3 and $2 is expected to be tested in the forthcoming days.
From a technical standpoint, XRP may evade a decline to $2 if it can close bullishly above $2.65. This would indicate a positive structural break, potentially encouraging futures traders to adopt a bullish stance, in alignment with spot traders.
Conversely, closing below $2.23 would invalidate XRP’s recent bullish momentum and reinforce the prevailing bearish trend. It is essential for XRP to maintain its position above the inclined support line to establish a trend towards higher highs in the upcoming days.
Despite positive spot trading activity, XRP’s price continues to hover without a definitive trend change. The market finds itself in a phase of sideways consolidation, as bulls and bears engage in a contest for dominance.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and individuals should conduct thorough research before proceeding.