Investors are anticipating a rise in XRP’s price, with expectations of more than a 4% increase as many opt for contracts that yield profits if the price remains above a certain threshold in March.
XRP (XRP) surged by 4% to $2.41 on Friday, March 21, as options market participants concentrated on in-the-money calls, driving open interest. Data from Deribit reveals that traders are flocking to the March 28 expiry, where ITM calls dominate open interest.
The rally was sparked by the announcement from Ripple CEO Brad Garlinghouse that the U.S. Securities and Exchange Commission would drop its appeal in the protracted lawsuit against the company. In a recent post, Garlinghouse stated that the SEC’s decision to withdraw its appeal signifies a pivotal moment for XRP, though there remains some uncertainty as the commission still needs to vote on the issue.
This legal struggle has burdened XRP since 2020, causing many exchanges to delist the asset. Now, traders seem to be betting on further gains. While there was an initial spike, some caution persists. Analysts previously indicated a crucial support level at $2.2653, with a drop below that point possibly indicating a trend reversal. However, technical indicators hint at potential additional gains.
Market sentiment is also mixed. Data from Coinglass shows that the long/short ratio for XRP exceeds 1 across most derivatives exchanges, indicative of bullish positioning. Yet, funding rates have turned negative, which is often viewed as a bearish signal.
Previously, Garlinghouse suggested that more developments could be on the horizon, mentioning the potential for an XRP ETF by late 2025. In an interview with Bloomberg, he expressed optimism that an XRP spot ETF approval could be feasible by the latter half of 2025.